Key Points
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Several “Magnificent Seven” stocks are much cheaper now than they were a few months ago.
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Meta Platforms is the cheapest of the group.
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The market is worried about Meta’s artificial intelligence (AI) spending.
The “Magnificent Seven” stocks, which include Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla, represent some of the largest tech companies globally. Recently, Meta Platforms (NASDAQ: META) emerged as the most affordable among them, trading at a forward price-to-earnings ratio of 21.1 compared to the S&P 500’s 21.9.
Meta is projected to spend between $115 billion and $135 billion on capital expenditures in 2026, primarily for AI initiatives, despite generating $59.9 billion in revenue in Q4 2025—$58.1 billion of which came from advertising. Concerns regarding its AI investments stem from past significant expenditures on the metaverse that failed to yield profitable results.
