Should Netflix Replace Tesla in "Mag 7"? ETFs in Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2024
0mins
Should l Buy MSFT?
Source: NASDAQ.COM
Tesla's Earnings and Market Position: Tesla experienced a significant stock surge of 23% following its third-quarter earnings report, which showed a 17% profit increase. However, analysts express caution regarding its long-term viability among tech giants due to concerns about overhyped fundamentals and declining market share.
Netflix as a Potential Replacement: Netflix has emerged as a strong contender to replace Tesla in the "Magnificent Seven" tech group, boasting impressive earnings, subscriber growth, and free cash flow improvements, with a current average brokerage recommendation indicating a favorable outlook for the stock.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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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- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
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See More
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- Execution Capability Issues: Analysts have labeled Microsoft's slow integration of new AI models as a “skill issue,” and its high customer concentration risk is concerning, with approximately 45% of its $625 billion cloud backlog tied directly to OpenAI commitments.
- Eroding Market Confidence: As the AI hype shifts towards a competition for bottom-line returns, market confidence in Microsoft's infrastructure ownership has waned, suggesting that mere ownership is no longer a guarantee of investor alpha.
See More
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See More
