Several of the 'Magnificent Seven' names have announced major investments in AI technology after reporting strong earnings. Yahoo Finance anchors Brian Sozzi and Akiko Fujita attend the Milken Global Institute's annual conference, where she joins Nuveen CEO Saira Malik, to discuss the overallocation of Big Tech names and their performance. We debated whether there was a possibility of a decline.
“I think this is the year to be selective. We saw that last week with Meta, which actually had a strong quarter with 27% revenue growth. But there are whispers. The numbers were 30% revenue growth.Here's why the stock is falling.''Now, let's look at Apple (AAPL). If you look at the fundamentals for this quarter, it's more about the seasonality of the next iPhone cycle. But Apple's stock price is rising. So I think it's important for these stocks to flock to these tech stocks,” Malik told Yahoo Finance.
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This post was written by Nicholas Jacobino
video transcript
Mark LA, founder of Avenue Capital, told me: Because everyone is already finished. I wonder if they were over-allocated or over-invested in Apple, Amazon, and the other seven great names that appear in the video. We may be underperforming for the year right now because everyone is investing in these names. Do you agree with that? I think this year is the year of choices. We actually saw in the meta last week that he had a good quarter with a 27% revenue increase. The whispered number was 30%.Earnings growth stocks are going down because it's over. Now, if you look at Apple, or look at the fundamentals this quarter, it's more about the next iPhone cycle, seasonal trading, but the stock was going up on its own. So Apple will go up. So I think concentrating on these tech stocks is important for these stocks. But there are also more resilient stocks like Amazon and Microsoft, which have had a head start over several years and are equipped with artificial intelligence. These should continue to be like small engines or big engines. It's time to look for potentially defensive assets. Maybe Apple or Amazon. Apple is owned by Amazon, so they're pretty defensive. I think it's the same resilience that comes from investing in logistics during the pandemic. When we look at defensive assets, we're also talking about areas like infrastructure, trade that is multi-year positive for us. Because we're not only almost done demonstrating the transition to renewable energy in our business. Both require further investment in infrastructure components such as the U.S. and utilities. Waste management tends to be less economical. You mentioned that there are significant changes in some of the names of the seven companies. On the other hand, it is interesting that there appears to be some concern about the scale of investment required. To enhance our AI offerings. Yet, as I looked around, I had made a number of investments that seemed to have a significant impact on the concerns of stock investors. But that wasn't the case for names and companies like Microsoft. With AI, I mean companies like Microsoft and NVIDIA have had a long head start, but it's important to go back to the late 90s. We were moving towards increasing internet usage. There were so many companies in the world. And I all remember there were companies that I could buy, but they weren't really resilient companies. I think companies like Microsoft and his NVIDIA can build a long-term position. They have a huge head start in terms of investing in AI. The long-term winners are, barring some ups and downs depending on valuation and people's positioning of the stock.
