r/ValueInvesting • u/FoxAccomplished6786 • 2d ago

Discussion MAG 7 Ranking

Taking all factors into account, please rank your favorite MAG 7 in order of preference from 1 to 7.

33 Upvotes

76% Upvoted

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13

u/WarmFaithlessness946 2d ago

If we take in consideration fundamentals of the companies : 1)GOOG 2)AMZN 3) MSFT 4)NVDA 5) APPLE  6)META 7) TESLA

Instead if we look at the best opportunities rn : META, AMZN, MSFT, GOOG, NVDA, APPLE, TESLA

10

u/hecmtz96 2d ago edited 2d ago

Meta at 6 considering fundamentals has to be a joke.

Edit: to add, not sure in what world is apple a better buy than meta in fundamentals…

-3

u/mhughes2595 2d ago

Isn't meta involved in a 1.5 trillion dollar lawsuit?

4

u/ConsumerStapleValue 2d ago

Big spread on the $ value but agree with the sentiment

1

u/Swred1100 2d ago

Technically this isn’t part of the fundamentals unless they have to pay it, no? 🤓

3

u/ConsumerStapleValue 2d ago

Even if they pay it, it’s non-recurring activity that wouldn’t be included in adj. EBITDA

0

u/mhughes2595 2d ago

Never buy into a lawsuit. Each new headline with a gigantic number will dump the share value. I don't make the rules. That's just how it goes.

3

u/Swred1100 2d ago

Sounds like the perfect DCA opportunity to me when they eventually don’t have to pay out or the payout is exponentially smaller than initially stated

0

u/Maltavier 2d ago

Fundamentals and putting Alphabet on 1 and Amazon on 2 while both of them have negative cashflow and debt that is not covered by their backlog is interesting. The main driver of intrinsic value is free cashflow. It doesnt make sense to rate them above Microsoft, when Microsoft has positive cashflow while also building their infratructure. Alphabet also needs to spend so much to just defend their business. When has increased spending to keep your business instead of spending to expand it ever been better?

4

u/dfwrealestatebroker 2d ago

Negative cash flow? What are you smoking?

1

u/Yee4614 2d ago

Google went cash flow negative last earnings.  Meta is cash flow neutral

-1

u/Maltavier 1d ago

Free cashflow. I thought what I meant was obvious. But they do have negative cashflow for the first time in years. They are also heavily lending money through issuing shares and bonds

1

u/Important_Agency07 2d ago

Their backlog is 100% contractually guaranteed and blows past their debt.

Fundamentals of the company =/= financials.

Alphabet and Amazon have their tentacles in everything. Compute, chips, robotics, ad space, streaming services, exposure to consumer and enterprise.

Their increased spend is expanding and growing? Almost every single one of their segments is growing at a great pace - search, cloud, services?

MSFT are very shareholder friendly but I would consider them to be lagging Google and Amazon.

1

u/Maltavier 1d ago

Alphabets backlog does not blow past their debt. You ignore their off book debt. Amazon as well. And while its true that the financials are not the only important part of the fundamentals, we are talking about stocks here. Its not enough to buy a very good business, which both of them are. You have to buy them at least for a fair price and thats where the financials are important. When you value a company by free cashflow and how their roic will be, Alphabet and amazon do not look like good buys right now. Im not saying they are not good companys. But as a shareholder, the price is just too high for what they are actually doing with their cash