If I Could Buy Only 1 "Magnificent 7" Stock Over the Next Year, Alphabet Would Be It, but Here's the Key Reason

Alphabet stock is lagging behind other Magnificent 7 stocks, but is that a buying opportunity?

Jun 21, 2025 - 13:21
 0
If I Could Buy Only 1 "Magnificent 7" Stock Over the Next Year, Alphabet Would Be It, but Here's the Key Reason

The "Magnificent Seven" moniker was originally intended as a warning to long-term investors. Remember, the movie by the same name doesn't have the happiest of endings, and the tragedy made sense as a metaphor for potential market bubbles. Still, the Magnificent Seven group keeps setting the tone for the overall stock market, and most of these stocks are market darlings in 2025, with double-digit price gains over the last 52 weeks.

But Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is lagging behind with a 2% price dip over the last year, and the stock looks downright undervalued in many ways. It's the only Magnificent Seven stock I have bought this year, for one simple reason: It's the best combination of affordable shares and unbeatable artificial intelligence (AI) expertise in this elite group.

The other Magnificent Seven companies may have a leg up on Alphabet in the AI market so far. Nvidia's (NASDAQ: NVDA) profitable sales growth is unbeatable. Revenue-based market shares suggest that the cloud computing solutions from Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are running circles around Google Cloud.

Continue reading