Although the Magnificent Seven stocks surged in 2023, they are beginning to falter in the first half of 2024. Soon, investors may need to be more picky about the Magnificent Seven stocks they purchase.
Two of the Magnificent Seven may have much more positivity in store for them as they led the stock market higher last year. Investors may need to exercise greater caution in 2024. Here’s why Alphabet and Meta Platforms could be two of the greatest Magnificent Seven stocks to purchase this month.
Alphabet
Although Google’s stock went public in 2004, the company didn’t form Alphabet until 2015, when it started to grow outside its primary internet search engine. Google and several other prominent companies, such as Waymo, DeepMind, and YouTube, are now housed under Alphabet. With Google Search, the $1.6 trillion tech giant continues to dominate the internet with a 91% global market share. However, investors’ attention has recently been drawn to the company’s artificial intelligence (AI) advancements.
In 2023, Alphabet brought in $307.4 billion in sales, up 9% from the previous year. Most of Google Search’s revenue still comes from its advertising-based business, which grew faster in the fourth quarter. It’s encouraging that the advertising sector is still recovering after a 2022 downturn brought on by increasing interest rates and inflation. According to those figures, Alphabet’s stock reached a record high in January of this year but dropped by 13%, offering investors a chance to purchase the shares.
Meta Platforms
Popular social networks Facebook, Instagram, and WhatsApp are all owned by Meta Platforms. With a 194% increase in stock price in 2023, it became the second-best performer in the S&P 500 index overall, only behind Nvidia. AI plays a part in Meta Platforms’ current popularity among investors, but the company’s massive cost reductions have also paid off, driving up earnings.
Meta uses AI in multiple contexts. Initially, the technology is being used to provide users on Facebook and Instagram with more relevant material, which increased the amount of time users spent on those platforms in 2023. AI discovers the material users enjoy and selects more to display in their feeds. Because of the extra time, Meta can show users more adverts, increasing revenue for the business. Meta provides companies with AI capabilities to help them create more engaging ads and increase conversions. In the future, every company on Meta’s social media channels can set up their own AI chatbot to answer incoming consumer inquiries on Messenger and WhatsApp. The chatbot will be well-versed in every industry and embody its fundamental principles.
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