Magnificent Seven valuations require more structural changes to be budged from their perch

Despite lower earnings

Conviction for the mega-cap Magnificent Seven stocks remains strong, but analysts have forecasted the remainder of the S&P 500 will contribute more to earnings growth in the coming year.

Since the turn of the year, the Magnificent Seven companies - Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla – have all struggled to deliver the levels of performance seen during 2024.  Markets brace for Magnificent Seven results amid warnings of 'wide-ranging implications' following sentiment shift Their average earnings rose 36.8% last year, according to data from the London Stock Exchange Group, and this is expected to decline to 17.1% in 2025. Meanwhile, S&P 500 excluding Magnificent Seven earnings are forecast to rise from 6.9% last year to 9.2% in 2025.  To ill...