The magnificent seven

February 2024

Can you have too much of a good thing? The US stock market’s dependance on the Magnificent Seven may be cause for concern.

In this paper we discuss The Magnificent Seven, a basket of seven mega-cap stocks that currently dominate the equity market. They include Alphabet (i.e., Google), Amazon, Apple, Meta (i.e., Facebook), Microsoft, Nvidia, and Tesla. Five of the seven companies (Alphabet, Apple, Meta, Microsoft, and Nvidia) are considered leaders in the technology industry. The other two (Amazon and Tesla) are heavily intertwined with technology and are also generally considered industry leaders.