The combined net cash position of major technology firms known as the “Magnificent Seven”—including Amazon (AMZN), Microsoft (MSFT), Apple (AAPL), Meta (META), and Alphabet (GOOG)—has dropped from approximately $300 billion in 2017 to below zero in 2026. This significant decline coincides with their $1.5 trillion investment in research and development over the past five years, further increasing operational costs without guaranteeing immediate returns.
Forecasts for 2026 suggest that the S&P 500 may not achieve a fourth consecutive year of double-digit total returns. Experts predict a broader market shift, where underperforming large-cap stocks may lead to capital rotating towards overlooked sectors, reminiscent of market trends observed between 2000 and 2004, where select industries still flourished while the S&P 500 declined by over 45% peak-to-trough.
