Mag 7 P/E Rankings Shift! Chase GOOG or Buy the Most Undervalued?
$Alphabet(GOOG)$ yesterday soared to a new all-time high of $302, outperforming NVDA over the past month. The market seems to be pricing GOOG as the AI application era’s big winner, with some projecting its market cap could surpass $4 trillion. Even over the next three months, some expect GOOG may continue to outperform NVDA.
So far this year, GOOG has been the best-performing MAG7 stock, up 53% YTD.
Meanwhile, $Tesla Motors(TSLA)$ , $Meta Platforms, Inc.(META)$ , and $Amazon.com(AMZN)$ have barely moved.
After this surge, forward P/E rankings have shifted — GOOG is no longer undervalued, while Meta now looks relatively cheaper. Apple’s valuation is above 90% of its historical percentile, despite limited gains this year.
Other top market-cap U.S. stocks are also shining: AVGO is approaching $2 trillion, and LLY recently broke $1,000, beating many tech stocks.
Looking at the bigger picture, Barclays has raised its $S&P 500(.SPX)$ year-end target to 7,400, and J.P. Morgan sees the recent U.S. market pullback — the longest losing streak since August — as a technical shakeout, offering dip-buying opportunities.
“Nothing has changed fundamentally, and our thesis doesn’t rely on Fed easing — now is a good time to buy the dip.”
Has Google’s rally peaked for the year? Compared to Microsoft’s 2023 surge, GOOG’s YTD gain is similarly around 50%+.
Would you add more GOOG now, or is Meta a better dip-buy?
Do you think the S&P 500 will reach 7,400 by year-end?
Is NVDA’s forward P/E of 40 expensive or still attractive?
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Google’s 50 percent YTD surge is strong, but the rally may not be over. Gemini 3 Pro gives it fresh AI momentum, and its valuation around 26 times earnings is still cheaper than most megacaps. It may consolidate, yet the uptrend remains intact.
Between Google and Meta, Google offers steadier AI-infrastructure upside while Meta provides a cleaner valuation dip after recent pullbacks. Choice depends on whether one prefers structural growth or valuation reset.
For the S&P 500, a year-end push toward 7 400 is possible if macro data stays stable and sentiment improves, though the window is tight.
Nvidia’s forward P/E of 40 is high, but still supported by exceptional AI demand. It is expensive, yet not unreasonable given its growth visibility.
I think there is a good chance of S&P500 reaching 7400 by year-end. Many are still expecting further rate cuts that would drive the rally and I think many retail investors would be buying the dip to help drive the rally.
Nvda’s forward p/e of 40 remains attractive as it is currently unrivalled. It is clearly in high demand that both China and the US fight for it and seek to impose restrictions on their opponent. It has now been able to affect national security and interests. Until the day nvda faces a worthy opponent, it will always remain in high demand and potentially and inelastic demand.
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Meta Platforms Inc (META) offers stronger valuation and more upside than GOOG, with a recovering ad business and efficiency gains, making it the better dip-buy, though GOOG remains the steadier and more value-focused choice
A target of 7,400 for the S&P 500 by year-end 2025 is quite challenging unless something unusually bullish occurs
While the forward P/E of 40 for NVIDIA Corporation (NVDA) is high, its dominant position in the AI data center market and strong growth potential make it attractive for long-term investors
Overall, GOOG remains a solid long-term hold but less favorable now, while META offers better value and upside, the S&P 500 reaching 7,400 by year-end seems unlikely, and NVDA continues to be compelling for long-term AI growth despite its high P/E。。。
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@Snowwhite
They have safe haven to run to if the AI bubble pops, so I'm sure AI-mad investors understand that, and choose to seek safety by investing in google to diversify a little more.
I don't think there is too much climbing to be done before year end, this wave is likely people running from other AI companies and diverting funds to google, so it will go up, but nothing absurd, after all the market seems to be facing some correction.
Google seems more sound in their fundamentals when compared to Meta. Meta feels very casual and callous when they take things on, but that's just the impression I get.
I have to say though... every time I see the number, I shake my head and laugh that tsla has such a high PE ratio, that's a whole other bubble waiting to pop.
After a year of strong gains, the S&P500 valuation is stretched by historical standards. High valuation means that there is little room for error. Any hiccup in economic data or disappointing earnings report could trigger a swift correction.
Much of the year's gains have been driven by the Magnificent 7, not a broad market rally. This concentration risk leaves the index vulnerable if Mag 7 stumble.
Geopolitical uncertainty & effects of inflation & interest rates continue to create headwinds.
Ultimately, chasing 7400 is less a matter of hard analysis and more a matter of emotional momentum.
Can the market overcome its cautious footing & launch a breathtaking final sprint?
My long term horizon makes me bullish on the market but 7400 may take a little longer.
@Tiger_comments @Tiger_SG @TigerStars @TigerClub @CaptainTiger
The bulls are roaring, pointing to Google Cloud's undeniable success & the seamless integration of AI into our digital lives. But the bears are also circling, whispering about overbought indicators & the eye watering valuation that no longer looks like the bargain it once was.
Meanwhile $Meta Platforms, Inc.(META)$ is down due to a one time tax charge that some see as a dip buying opportunity. It is potentially riskier but also possibly more rewarding.
My money is on Google as it has a proven business model, AI leadership & a solid financial position which aligns with a stable, long term growth.
Unlike Meta's more speculative AI investments, Google is already monetising its AI advancements through Google Cloud & enhanced search dominance, showing clear returns on its capex.
@Tiger_comments @TigerStars @Tiger_SG @TigerClub @TigerStars
Between adding GOOG or Meta, I slightly prefer Meta $Meta Platforms, Inc.(META)$ at this level. Google is no longer cheap, while Meta’s valuation looks more appealing after months of consolidation. Meta’s ad engine remains strong, and its AI push is still underpriced. For me, GOOG is a hold or small add, while Meta looks more like a dip opportunity.
On the broader market, the S&P 500 reaching 7,400 is achievable if earnings hold up. NVDA at 40x forward earnings isn’t cheap, but still reasonable for a dominant leader with strong growth. Attractive long term, just with more volatility ahead.
@Tiger_comments @TigerStars
在這次飆升之後，遠期市盈率排名發生了變化——GOOG不再被低估，而Meta現在看起來相對便宜。蘋果估值高於其歷史百分位數的90%，儘管今年漲幅有限。