Magnificent 7 vs S&P 500
The "Magnificent Seven" (Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla) stocks account for approximately 20% to 22% of the entire global stock market's capitalization.
| Index | Market Scope | Approximate Weight | Source |
|---|---|---|---|
| MSCI ACWI | Global (Developed & Emerging) | ~20% | Man Group |
| MSCI World | Global Developed Markets Only | ~22% | Nationwide Financial |
| S&P 500 | United States Large-Cap Only | 33.9% | The Motley Fool |
The "Magnificent Seven" as % of S&P 500:
Exact closing prices for each "Magnificent Seven" stock on May 29, 2026, and June 30, 2026:
| Company (Ticker) | End of May 2026 Close | End of June 2026 Close | Monthly Return |
|---|---|---|---|
| Microsoft (MSFT) | $450.24 | $373.02 | -17.15% |
| Amazon (AMZN) | $270.64 | $238.34 | -11.93% |
| Meta Platforms (META) | $632.51 | $563.29 | -10.94% |
| Apple (AAPL) | $312.06 | $289.36 | -7.27% |
| Alphabet (GOOGL) | $380.34 | $357.37 | -6.04% |
| NVIDIA (NVDA) | $211.14 | $200.09 | -5.23% |
| Tesla (TSLA) | $435.79 | $420.60 | -3.49% |
Exact closing prices for each "Magnificent Seven" stock on June 30, 2026 and Aug 10, 2026:
| Company (Ticker) | June 30, 2026 Close | Current Price (Aug 10, 2026) | Performance Change |
|---|---|---|---|
| Microsoft (MSFT) | $373.02 | $506.06 | +35.7% |
| Amazon (AMZN) | $238.34 | $278.09 | +16.7% |
| NVIDIA (NVDA) | $200.09 | $217.55 | +8.7% |
| Apple (AAPL) | $289.36 | $308.26 | +6.5% |
| Meta Platforms (META) | $563.29 | $594.92 | +5.6% |
| Alphabet (GOOG) | $353.33 | $355.84 | +0.7% |
| Tesla (TSLA) | $420.60 | $330.88 | -21.3% |
Free Cash Flow of each "Magnificent Seven" stock:
| Company (Ticker) | 2026 Operating Cash Flow (OCF) | 2026 Free Cash Flow (FCF) | Comments |
|---|---|---|---|
| Apple (AAPL) | $165.40 Billion | $105.50 Billion | Tracking off an actual $82.7B H1 print. |
| Meta Platforms (META) | $127.40 Billion | $3.14 Billion | Q2 FCF collapsed to $784M due to a massive $31.08B quarterly Capex spike. |
| Microsoft (MSFT) | $122.70 Billion | $66.99 Billion | FY2026 actuals; FCF dipped 6.4% due to $55.7B spent on cloud infrastructure. |
| NVIDIA (NVDA) | $105.00 Billion | $96.68 Billion | FY2026 actuals; FCF surged 58.8% via high pricing power and 75% gross margins. |
| Amazon (AMZN) | $161.40 Billion | -$7.60 Billion | Trailing 12-months FCF dipped negative under a $200B multi-year Capex plan. |
| Alphabet (GOOGL) | $78.20 Billion | $8.40 Billion | Squeezed heavily by a $44.9B Q2 Capex budget, pushing Q2 FCF into a deficit. |
| Tesla (TSLA) | $17.20 Billion | $0.60 Billion | H1 FCF dragged down by a negative $1.1B print in Q2 amid AI & Optimus tooling. |
| TOTALS | $777.30 Billion | $273.71 Billion | Combined free cash flow conversion rate sits at 35.2%. |
P/E Ratios of each "Magnificent Seven" stock:
| Company (Ticker) | Stock Price (Aug 10, 2026) | Trailing P/E (TTM) | Forward P/E (FY2026) | Core Rationale & Market Sentiment |
|---|---|---|---|---|
| Alphabet (GOOG) | $355.84 | 17.9x | 17.3x | Cheapest; heavily discounted due to massive CapEx dragging short-term margins. |
| Meta Platforms (META) | $594.92 | 22.3x | 18.7x | High earnings growth from advertising efficiency is compressing its forward multiple rapidly. |
| Amazon (AMZN) | $278.09 | 22.3x | 22.1x | Historical P/E is at multi-year lows as AWS and digital ad scaling outpace infrastructure build costs. |
| NVIDIA (NVDA) | $217.55 | 33.3x | 24.3x | Forward P/E is surprisingly low relative to growth because triple-digit EPS spikes constantly outpace the share price. |
| Microsoft (MSFT) | $506.06 | 28.4x | 26.0x | Premium software multiple supported by Azure clearing a milestone $100 billion annualized run-rate. |
| Apple (AAPL) | $308.26 | 38.1x | 32.9x | Historically stretched multiple; investors are paying a steep premium for high-margin services revenue. |
| Tesla (TSLA) | $330.88 | 304.2x | 191.2x | Outlier multiple; automotive margins are under pressure while valuation heavily relies on future autonomy and robotics. |
Removing OpenAI deals from Microsoft's sales:
| Adjustment Scenario | Adjusted Net Income | New EPS | Recomputed P/E |
|---|---|---|---|
| 1. Reported Baseline (As of Aug 2026) | $133.76 Billion | $17.95 | 28.19x |
| 2. Remove Non-Operating Gains Only | $128.80 Billion | $17.28 | 29.28x |
| 3. Remove Sales at Standard Margin | $120.00 Billion | $16.10 | 31.42x |
| 4. Worst-Case Circular Collapse | $104.70 Billion | $14.05 | 36.0x |
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