Longtime Mag 7 Bull Advises Investors to Jump Ship: "It Will Be a Game of Thrones."
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Source: CNBC
Market Shift: Ed Yardeni, president of Yardeni Research, advises investors to underweight the "Magnificent Seven" tech stocks (Microsoft, Apple, Amazon, Nvidia, Tesla, Meta, Alphabet) due to their high valuations and market concentration, suggesting a shift towards the remaining 493 S&P 500 stocks.
Valuation Concerns: The Magnificent Seven stocks are trading at significantly higher price-to-earnings ratios compared to the broader market, with the Nasdaq-100 index reflecting a multiple of 27, indicating potential overvaluation.
Performance Disparity: While the Roundhill Magnificent Seven ETF has seen a 24% increase in 2025, the broader market, represented by the Invesco S&P 500 Equal Weight ETF, has only risen by 9.6%, highlighting the disparity in performance driven by a few large tech stocks.
Future Recommendations: Yardeni suggests that for the Magnificent Seven to maintain their success, they will need to generate sales from the broader S&P 493, and he recommends investing in financial, industrial, and healthcare sectors instead.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 612.340
Low
655.15
Averages
824.71
High
1117
Current: 612.340
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
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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- Social Platform Paid Plans: Meta has also introduced subscription plans for Instagram, Facebook, and WhatsApp globally, priced at $3.99 and $2.99 per month respectively, providing additional features to attract users and further expand its user base and revenue sources.
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- Strong Financial Performance: In its fiscal Q1 2024 report, Snowflake posted an adjusted earnings per share of $0.39 and revenue of $1.39 billion, reflecting a 33% year-over-year increase and surpassing analyst expectations, indicating sustained growth momentum.
- Optimistic Market Outlook: The company anticipates a 12.5% adjusted operating margin for fiscal Q2 2024, with product revenue projected between $1.415 billion and $1.420 billion, underscoring strong demand and profitability in the AI market.
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