After Stellar Earnings & Rebound, Are Mag 7 Still Undervalued or Not?
Mag 7 companies except $NVIDIA(NVDA)$ have released stellar Q1 earnings. Despite weak guidance from $Apple(AAPL)$ and $Amazon.com(AMZN)$ , their earnings were impressive. However, the rebound degree among these big tech firms varies.
Among them, $Microsoft(MSFT)$ and $Meta Platforms, Inc.(META)$ are the only two that have achieved positive year-to-date returns, thanks largely to their better-than-expected AI outlooks.
Following the earnings rally, Microsoft’s forward P/E has now risen above the 80th historical percentile.
$Tesla Motors(TSLA)$ and $Apple(AAPL)$ also have relatively high forward P/Es, both exceeding the 70th percentile.
$Alphabet(GOOG)$ stands out as the cheapest among the giants. Even after delivering strong results in April, its forward P/E remains under 20 — the only one in the Mag 7 to do so.
Overall, after the recent rebound, Mag 7 valuations have returned to an awkward middle ground: neither clearly overvalued nor undervalued.
If not Mag 7, are China tech good choice now?
Among the popular Chinese tech names listed in Hong Kong, only $XIAOMI-W(01810)$ currently has a forward P/E above 20. $JD-SW(09618)$ forward P/E is in the single digits. Before this rally, most Chinese tech stocks were trading below 10x earnings.
While they are no longer as cheap as before, they still trade at significantly lower valuations compared to their U.S. counterparts when measured by EPS and P/E. $TENCENT(00700)$ $BYD COMPANY(01211)$
Different from the plunge of Mag 7, only $JD-SW(09618)$ and $MEITUAN-W(03690)$ lost YTD due to recent food delivery war in China.
After stellar earnings and rebound, are Mag 7 still undervalued or not?
So which would you choose: the Mag 7 or Chinese tech stocks?
And finally — are Chinese tech stocks still undervalued?
Join our topic and post directly: 1. HKD Strengthens: Can China Stocks' Rally Continue? 2. Mag 7 Smashes Earnings: Time to Double Down or Sell in May?
or leave your comments to win tiger coins~
Plus, you can stand a chance to get $5 stock vouchers. Event detail to click: [Event Reward] Join Hot Topics Everyday to Win $5 Stock Vouchers & Tiger Coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
However for those who prefer lower volatility, perhaps locking in the profits maybe more suitable.
Ultimately there is no right or wrong in investing. It all comes down to each person's risk profile, investment horizon and whether you believe that the current valuations can be sustainable in an unpredictable macro environment.
@Tiger_comments @TigerStars @Tiger_SG @CaptainTiger @TigerClub
So got to go thru the company’s report etc etc not just hear say 😃
Agree with some of the comments that China stock should be accumulated with 3-5 years horizon.
以英伟达为例，它的盈利能力几乎在重塑AI产业链的同时，也把自身估值撑到了一个很难被其他同行复制的高度。它现在的估值不算便宜，但若从未来三年AI渗透率和数据中心资本开支增长来看，我觉得它并没有被“高估”。
另外像Meta和亚马逊，虽然股价涨了不少，但其实利润率还有很大的提升空间，尤其是在降本增效后。所以就我个人而言，我觉得Mag 7里仍有部分个股是“结构性低估”的，特别是微软和Alphabet，这两家现金流强、AI布局稳，我更倾向于中长期持有。
那要在Mag 7和中国科技股之间选一个？坦白讲，我现在偏向前者。原因很现实——美国的制度和政策稳定性高，资金更愿意给它们估值溢价。而中国科技股虽然估值便宜，阿里、腾讯、百度都处于低位，但政策和市场信心仍不够稳定，反弹持续性很难把握。
至于中国科技股是不是被低估？**肯定是的。**很多龙头股的估值都处在历史低位，甚至低于疫情期间，但“低估”≠马上会上涨。市场需要看到政策层面明确的支持信号，尤其是对平台经济的真正“放行”，而不是模糊的表态。
所以我的策略是：主仓配美股龙头，A股和港股科技股设为“观察池”，等政策信号更清晰再逐步介入。你现在更看好哪一边？
at least 15% higher!