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THE Nasdaq-100 is made up of 100 of the largest non -financial companies listed on the Nasdaq sotck exchange. He has delivered a yield of 343% in the last decade, doubling the most diverse gain S&P 500 Thanks to its high concentration of the largest technological stocks in the world.
But the NASDAQ-100 can also be more volatile in times of uncertainty, and it is currently in correction territory after a decrease of 13% compared to its recent peak. Some of the biggest constituents in the index, namely the “”Magnificent seven“Directs the decline. This group of seven companies has won its nickname for their tendency to surpass the wider market (despite the occasional approximate patch) and their incredible size. Here they are, as well as their recent stock markets:
Apple: 3.1 billions of dollars.
Microsoft: 2.8 billions of dollars.
Nvidia: 2.8 billions of dollars.
Amazon : 2.1 billions of dollars.
Alphabet(Nasdaq: Googl)(Nasdaq: Goog): 2 billions of dollars.
Meta-platforms(Nasdaq: Meta): 1.5 billion of dollars.
Tesla: $ 770 billion.
I want to focus on two of these actions because of their attractive assessments compared to the rest of the group, and their potential to capitalize on emerging themes such as artificial intelligence (AI). Meta platforms and alphabet shares are down 19% and 21%, respectively, of their record heights, and here is why investors could regret not having bought them on the decline.
Meta Platforms is Facebook, Instagram’s parent company and WhatsApp social networks, which serve more than 3.3 billion people every day. The company generates income by selling advertising slots to businesses, so the more it can display ads every day, the more money it earns.
Since almost half of the world’s population already uses META applications, attracting new registrations becomes more difficult, so the company focuses on the commitment instead. It uses AI in its recommendation engines to find out what type of content users like to see, so that it can show them more to keep them online longer.
Towards the end of 2024, CEO Mark Zuckerberg said that this strategy caused an 8% year increase to the other in time as users spent on Facebook and an increase of 6% for Instagram.
The introduction of new products is also part of the management’s engagement tool kit. The company launched an AI chatbot called Meta AI last year which is accessible via all its existing applications.
Users can ask him questions about a variety of subjects or invite him to their group conversations to settle the debates and recommend fun activities. Meta Ai had more than 700 million monthly active users at the end of last year, making it one of the most popular chatbots in the world.
It is powered by the LLAMA family of the large -language model company (LLM). They are open-source and attracted more than 600 million downloads, which allows the company to rely on a huge community of developers to correct bugs and improve models much faster. Thanks to this approach, these models have become among the most powerful in industry.
Zuckerberg thinks that the next version of Llama 4 will actually outdo some of the best models of a closed source of developers like Openai. If this is true, Meta AI could become one of the most “intelligent” chatbots in the industry, which could attract new users and create more opportunities to generate income.
Meta generated a record of $ 164.5 billion in revenues last year, up 22% against 2023. Its profit per share (BPA) climbed from 60% to $ 23.86. This places its stock at a price / benefit ratio (P / E) of 24.7, which makes it the second magnificent Seven Stock; Only the alphabet is cheaper.
Based on the solid financial growth of the company and its IA leadership potential, the recent 19% decrease in its shares presents a great long -term purchase opportunity for investors.
Image source: alphabet.
Alphabet is Google’s parent company, YouTube, and the developer of autonomous Waymo cars. Google generates more than half of the total conglomerate income, led by its search engine, which sells advertising slots to businesses.
AI chatbots have threatened Google Search’s domination over the past two years because they provide Internet users with a new practical way to access information. Alphabet invests massively in AI to ensure that Google maintains its 90% market share in research. He launched the IA previews last year, which appear at the top of the traditional Google search results when users enter a request.
They combine text, images and links to third -party websites to provide a holistic response generated by AI, which can save users from sieving via web pages to find the information they need.
Alphabet says that the monetitized previews as well as the traditional research format, so they should not harm Google’s ability to generate income. In fact, the company claims that users are looking for more frequently thanks to the previews, as they can refine their questions and extract more complex information than before.
The glimpses are fueled by the LLMS alphabet geminum family, which the company has developed internally to compete with impressive start-up models like Openai and Anthropic. Not only does Gemini play a crucial role in improving Google research, but he also feeds an autonomous chatbot of the same name, and an AI assistant who is integrated into Google Workspace applications like Gmail, Docs and Sheets.
Finally, Google Cloud deserves a special mention because it is the segment that knows the fastest growth in the entire alphabet company. It has become an essential destination for companies and developers looking for the computer capacity of the cutting -edge data center, and LLM (including Gemini), which they use to create their own AI software.
During the last quarter of 2024, Google Cloud customers used the amount of IT capacity eight times for AI training and IA inference workloads than 18 months earlier. Google Cloud’s developer platform, Vertex IA, has increased customers last year on the whole.
In simple terms, the various efforts of AI of alphabet generate a significant quantity of momentum, which does not quite correspond to the recent decrease of 21% in the price of its shares. Normally, when the fundamentals of a company improve, but its actions move below, this represents a purchase opportunity for investors.
The company increased its BPA by 38% in 2024 to a record of $ 8.04, and as the displayed in the graph that I shared earlier, which places its stock at a P / E ratio of only 20.2. Not only is it by far the cheapest magnificent Seven, but it is also 32% cheaper than the Nasdaq-100 index as a whole, which is negotiated at a P / E of 29.8.
Have you ever had the impression of having missed the boat to buy the most successful actions? So you will want to hear this.
On rare occasions, our team of analysts experts issues a The “Double Down” stock Recommendation for the companies they think are about to burst. If you are afraid, you have already missed your chance to invest, it’s the best time to buy before it is too late. And the figures speak for themselves:
NVIDIA:If you have invested $ 1,000 when we doubled in 2009,You would have $ 315,521! *
Apple: If you have invested $ 1,000 when we doubled in 2008, You would have $ 40,476! *
Netflix: If you have invested $ 1,000 when we doubled in 2004, You would have $ 495,070! *
Currently, we are issuing “double” alerts for three incredible companies, and there may be no luck like this as soon as it is.
Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Anthony Di Pizio Has no position in the actions mentioned. The Motley Fool has positions and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends the NASDAQ and recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.
