Mag 7 P/E Rankings Shift! Chase GOOG or Buy the Most Undervalued?
$Alphabet(GOOG)$ yesterday soared to a new all-time high of $302, outperforming NVDA over the past month. The market seems to be pricing GOOG as the AI application era’s big winner, with some projecting its market cap could surpass $4 trillion. Even over the next three months, some expect GOOG may continue to outperform NVDA.
So far this year, GOOG has been the best-performing MAG7 stock, up 53% YTD.
Meanwhile, $Tesla Motors(TSLA)$ , $Meta Platforms, Inc.(META)$ , and $Amazon.com(AMZN)$ have barely moved.
After this surge, forward P/E rankings have shifted — GOOG is no longer undervalued, while Meta now looks relatively cheaper. Apple’s valuation is above 90% of its historical percentile, despite limited gains this year.
Other top market-cap U.S. stocks are also shining: AVGO is approaching $2 trillion, and LLY recently broke $1,000, beating many tech stocks.
Looking at the bigger picture, Barclays has raised its $S&P 500(.SPX)$ year-end target to 7,400, and J.P. Morgan sees the recent U.S. market pullback — the longest losing streak since August — as a technical shakeout, offering dip-buying opportunities.
“Nothing has changed fundamentally, and our thesis doesn’t rely on Fed easing — now is a good time to buy the dip.”
Has Google’s rally peaked for the year? Compared to Microsoft’s 2023 surge, GOOG’s YTD gain is similarly around 50%+.
Would you add more GOOG now, or is Meta a better dip-buy?
Do you think the S&P 500 will reach 7,400 by year-end?
Is NVDA’s forward P/E of 40 expensive or still attractive?
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Google’s 50 percent YTD surge is strong, but the rally may not be over. Gemini 3 Pro gives it fresh AI momentum, and its valuation around 26 times earnings is still cheaper than most megacaps. It may consolidate, yet the uptrend remains intact.
Between Google and Meta, Google offers steadier AI-infrastructure upside while Meta provides a cleaner valuation dip after recent pullbacks. Choice depends on whether one prefers structural growth or valuation reset.
For the S&P 500, a year-end push toward 7 400 is possible if macro data stays stable and sentiment improves, though the window is tight.
Nvidia’s forward P/E of 40 is high, but still supported by exceptional AI demand. It is expensive, yet not unreasonable given its growth visibility.
I think there is a good chance of S&P500 reaching 7400 by year-end. Many are still expecting further rate cuts that would drive the rally and I think many retail investors would be buying the dip to help drive the rally.
Nvda’s forward p/e of 40 remains attractive as it is currently unrivalled. It is clearly in high demand that both China and the US fight for it and seek to impose restrictions on their opponent. It has now been able to affect national security and interests. Until the day nvda faces a worthy opponent, it will always remain in high demand and potentially and inelastic demand.
Check them in the history - “community distribution“
Meta Platforms Inc(META)比GOOG提供更强的估值和更大的上涨空间，广告业务复苏和效率提高，使其成为更好的逢低买入选择，尽管GOOG仍然是更稳定、更注重价值的选择
标普500到2025年底达到7,400点的目标相当具有挑战性，除非发生异常乐观的事情
虽然英伟达公司(NVDA)40的预期市盈率很高，但其在人工智能数据中心市场的主导地位和强劲的增长潜力使其对长期投资者具有吸引力
总体而言，GOOG仍然是可靠的长期持有，但现在不太有利，而META提供了更好的价值和上涨空间，标普500在年底前达到7,400点似乎不太可能，而NVDA尽管其高市盈率……
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@Huat99
@Snowwhite
They have safe haven to run to if the AI bubble pops, so I'm sure AI-mad investors understand that, and choose to seek safety by investing in google to diversify a little more.
I don't think there is too much climbing to be done before year end, this wave is likely people running from other AI companies and diverting funds to google, so it will go up, but nothing absurd, after all the market seems to be facing some correction.
Google seems more sound in their fundamentals when compared to Meta. Meta feels very casual and callous when they take things on, but that's just the impression I get.
I have to say though... every time I see the number, I shake my head and laugh that tsla has such a high PE ratio, that's a whole other bubble waiting to pop.
After a year of strong gains, the S&P500 valuation is stretched by historical standards. High valuation means that there is little room for error. Any hiccup in economic data or disappointing earnings report could trigger a swift correction.
Much of the year's gains have been driven by the Magnificent 7, not a broad market rally. This concentration risk leaves the index vulnerable if Mag 7 stumble.
Geopolitical uncertainty & effects of inflation & interest rates continue to create headwinds.
Ultimately, chasing 7400 is less a matter of hard analysis and more a matter of emotional momentum.
Can the market overcome its cautious footing & launch a breathtaking final sprint?
My long term horizon makes me bullish on the market but 7400 may take a little longer.
@Tiger_comments @Tiger_SG @TigerStars @TigerClub @CaptainTiger
The bulls are roaring, pointing to Google Cloud's undeniable success & the seamless integration of AI into our digital lives. But the bears are also circling, whispering about overbought indicators & the eye watering valuation that no longer looks like the bargain it once was.
Meanwhile $Meta Platforms, Inc.(META)$ is down due to a one time tax charge that some see as a dip buying opportunity. It is potentially riskier but also possibly more rewarding.
My money is on Google as it has a proven business model, AI leadership & a solid financial position which aligns with a stable, long term growth.
Unlike Meta's more speculative AI investments, Google is already monetising its AI advancements through Google Cloud & enhanced search dominance, showing clear returns on its capex.
@Tiger_comments @TigerStars @Tiger_SG @TigerClub @TigerStars
在添加GOOG或Meta之间，我稍微更喜欢Meta $Meta Platforms, Inc.(META)$ 在这个水平上。谷歌不再便宜，而Meta经过数月的整合后，估值看起来更具吸引力。Meta的广告引擎依然强劲，其人工智能推动的价格仍然被低估。对我来说，GOOG是持有或小幅增持，而Meta看起来更像是一个下跌机会。
在更广泛的市场上，如果盈利保持不变，标普500达到7,400点是可以实现的。NVDA的预期市盈率为40倍，并不便宜，但对于增长强劲的主导领导者来说仍然是合理的。长期来看具有吸引力，只是未来会出现更大的波动。
@Tiger_comments @TigerStars
在這次飆升之後，遠期市盈率排名發生了變化——GOOG不再被低估，而Meta現在看起來相對便宜。蘋果估值高於其歷史百分位數的90%，儘管今年漲幅有限。