The “Magnificent Seven,” comprising Nvidia, Microsoft, Apple, Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL, GOOG), Meta Platforms, and Tesla, has significantly outperformed broader market indexes over the past five years, with Amazon being the only underperformer against the S&P 500. This group is expected to continue its market influence due to individual advantages and growth potential.
According to eMarketer, e-commerce sales are projected to rise from 20.3% of total retail sales in 2024 to 23% by 2027. Amazon commands approximately 40% of the e-commerce market and is also the largest cloud service provider, with its AWS segment playing a crucial role in the generative AI market, which is anticipated to grow at nearly 27% annually over the next five years. Meanwhile, Alphabet has faced a 6% decrease in share price this year, affected by antitrust concerns, but still shows strong underlying business performance and investments in AI and autonomous vehicles through its Waymo subsidiary.
