Apple, Tesla And Other MAG 7 Peers Too Expensive? Top Hedge Fund Challenges 'Overvaluation' Concerns, Says They Are Fairly Priced If They Sustain 20% Earnings Growth Rate

Quick Summary:

According to Tambour, the ‘Magnificent Seven’ — Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Meta Platforms Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), Nvidia Corporation (NASDAQ:NVDA), and Tesla Inc. (NASDAQ:TSLA) — need to grow earnings per share by 14% annually over the next decade to generate a standard risk premium over bonds.

What Happened: Bridgewater’s co-chief investment officer, Karen Karniol-Tambour, offers a contrasting viewpoint to the Goldman Sachs data according to which the top 10 companies in the index are trading at 27x their projected earnings over the next 12 months, compared to 20x for the remaining ones on the S&P 500, reported Market Watch on Thursday.

Top Hedge Fund Bridgewater Associates has questioned the widespread notion that the ‘Magnificent Seven’ stocks are overvalued, while the rest of the S&P 500 stocks are comparatively undervalued.

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Author / Journalist: Namrata Sen

Category: Technology

Markets: United States

Topics: AAPL US88160R1014 US5949181045 News Benzinga US38259P7069 GOOG NVDA US0231351067 Tech GOOGL US67066G1040 US38259P5089 MSFT TSLA Equities AMZN META Stories That Matter Markets Magnificent 7 US0378331005

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Published On: 2025-02-14 @ 07:01:02 (1 weeks ago)

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