JPMorgan Warns That Investor Enthusiasm for Mag 7 Stocks May Be Overdone and Could Change Soon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Should l Buy GOOG?
Source: CNBC
Market Sentiment: Wall Street's enthusiasm for the "Magnificent Seven" tech stocks is driving the broader market to all-time highs, but JPMorgan warns that this infatuation may soon turn risky.
Earnings Performance: Five of the Magnificent Seven companies reported earnings that exceeded expectations, yet investor reactions varied, with some stocks like Meta and Microsoft experiencing declines due to concerns over AI expansion costs.
Valuation Concerns: The Magnificent Seven are trading at elevated price-to-sales ratios, and there are signs that earnings revisions are moderating, indicating a potential peak in sales and earnings.
Market Dependency: The broader market's gains are heavily reliant on these seven stocks, with the market cap-weighted S&P 500 up 16% in 2025, while the equal-weighted S&P 500 only increased by 7%, suggesting that a downturn in the Magnificent Seven could negatively impact the overall market.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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