Motley Fool Money Mag Seven or Lag Seven?
Jan 5, 2024
Matt Argersinger and Jason Moser, senior analysts at Motley Fool, dive into the soaring 2023 performance of big tech names, discussing the premium valuations of the 'Magnificent Seven' and exploring other investment opportunities. They analyze holiday e-commerce trends and dissect Walgreens' recent dividend cut. David Gardner, co-founder of Motley Fool, shares timeless investment strategies to inspire listeners for the new year. The conversation wraps up with insights on UiPath's automation technology and Pebblebrook Hotel Trust's recovery efforts.
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Magnificent Seven Valuations
- The "Magnificent Seven" tech stocks drove 2023 market gains, but their high valuations raise concerns for 2024.
- Their forward P/E ratios average 35, significantly higher than the S&P 500 average of 19.
Apple Downgrades
- Apple's recent downgrades reflect its tremendous 2023 performance and potential slowdown in iPhone upgrades.
- Its P/E ratio doubled since 2019, and slowing services revenue adds to concerns.
Buying Opportunities
- Declines in "Magnificent Seven" stock prices may present attractive buying opportunities.
- These best-of-breed businesses possess pricing power and non-cyclical recurring revenue.