Straight from the Desk

Syz the moment

Live feeds, charts, breaking stories, all day long.

13 Feb 2024

The Magnificent Seven now have a higher market cap than the entire stock markets of Japan, France, the United Kingdom and Mexico COMBINED!

source : barchart

12 Feb 2024

Lots of talk about a bubble in AI/Mag 7...

At this point, valuations at the top are no where near as frothy as they were at the height of the Dot Com Bubble. The 5 largest stocks traded at 43x Fwd PE in March ‘00, a 59% premium to the Mag 7’s current multiple of 27x. Source: David Marlin, Goldman Sachs

8 Feb 2024

The "sexy six"... The Mag 7 (ex-TSLA) is up ~610bps more than the Mag 7 this year.

Source: Koyfin, TME

7 Feb 2024

The Magnificent 7 are almost as big as… Gold!!

Source. Jeroen Blokland, True Insights

5 Feb 2024

Expensive for a reason...

Since December 2019, the Magnificent 7 stocks collectively delivered a 28% annualized return. Of this, approximately 27% is attributable to earnings growth (21% sales growth and 6% margin expansion) with only 1% due to multiple expansion. In contrast, earnings drove only 13% of the S&P 500’s 17% annualized return since 2019. Looking forward, Goldman expect revenue growth will be the key driver of returns for the Magnificent 7 stocks. Bottom-up consensus expects the seven companies will collectively grow sales at a 12% CAGR through 2026 compared with an 3% CAGR for the remaining 493 companies in the S&P 500 index.

5 Feb 2024

$TSLA is the only Magnificent 7 Stock to be in the red over the last 12 months.

Not only that, Tesla is getting absolutely trounced by the rest of the group. Should we rename this group the Magnificent 6 going forward? Source: barchart

5 Feb 2024

To put things into perspective

Assuming Nvidia meets estimates, the Mag 7 generated $523bn in sales during 4Q, +14%YoY. Revenue growth for remaining 493 S&P 500 stocks was a comparatively paltry 2%. Margins for the mag 7 expanded by ~750 bp YoY to 23% vs. a 110 bp contraction to 9% for remaining 493 stocks in the S&P 500, Goldman has calculated. Source: HolgerZ, Goldman Sachs

5 Feb 2024

Friday's market action tells a lot about what's currently going on

1) US large-caps equities index recorded strong gains ($SPX +1.07%; $NDX +1.69%) thanks to huge advance by $META (+20%) and $AMZN (+7%); 2) Underneath the surface, there is some selling taking place - the S&P 500 equally weight is DOWN -0.08% on the day. We need to see decent market breath for the equity bull market extend as the mag7 (or rather the "mag 4" as leadership is even more narrow than in 2023) will not be able to carry the market forward for ever... Source: Bloomberg

Thinking out loud

Sign up for our weekly email highlighting the most popular posts.

Follow us

Thinking out loud

Investing with intelligence

Our latest research, commentary and market outlooks