--- title: "Ranking the \"Magnificent Seven\" From Most to Least Attractive, Based on Future Cash Flow" type: "News" locale: "en" url: "https://longbridge.com/en/news/293910115.md" description: "Based on forward-year cash flow estimates, Meta Platforms and Amazon are ranked as the most attractive among the 'Magnificent Seven' tech stocks, while Tesla and Apple are considered least attractive. Meta benefits from AI-enhanced advertising efficiency, and Amazon's high-margin AWS segment is driving growth. Conversely, Tesla and Apple appear expensive relative to their future cash generation potential." datetime: "2026-07-27T09:37:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293910115.md) - [en](https://longbridge.com/en/news/293910115.md) - [zh-HK](https://longbridge.com/zh-HK/news/293910115.md) generator: "portal-rs" --- # Ranking the "Magnificent Seven" From Most to Least Attractive, Based on Future Cash Flow Since early June, Wall Street's major stock indexes have all rallied to fresh record highs. While artificial intelligence (AI) is the trend behind this surge in stock valuations, it's the "Magnificent Seven" that have done most of the heavy lifting. The Magnificent Seven is composed of: - **Nvidia** (NVDA -1.01%) - **Apple** (AAPL +3.52%) - **Alphabet** (GOOGL +0.58%)(GOOG +0.21%) - **Microsoft** (MSFT +0.02%) - **Amazon** (AMZN -0.70%) - **Meta Platforms** (META -1.80%) - **Tesla** (TSLA -2.08%) These are some of Wall Street's most influential businesses, and they're all, to some degree or another, dependent on the AI revolution for their future growth prospects. They're also companies with markedly different outlooks, based on their operating cash flow. ![A magnifying glass laid atop a financial newspaper, which has enlarged a subhead that reads, Market data.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODA0MzgvbWFnbmlmaXlpbmctZ2xhc3MtZmluYW5jaWFsLW5ld3NwYXBlci1tYXJrZXQtZGF0YS1zdG9ja3MtZWNvbm9teS1nZXR0eS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## Ranking the Magnificent Seven according to their forward-year cash flow While the time-tested price-to-earnings ratio is the safety blanket for investors when quickly evaluating mature businesses, it doesn't do justice to growth stocks (i.e., the Magnificent Seven). Given that these companies aggressively reinvest their cash flow into high-growth initiatives, future cash flow serves as a *far* better measure of value. According to Wall Street's consensus cash-flow-per-share estimates for next year, here's how the Magnificent Seven rank from most (i.e., cheapest) to least attractive (as of July 23): - **Meta Platforms**: 9.44 times estimated forward-year cash flow - **Amazon**: 10.36 - **Microsoft**: 13.04 - **Alphabet**: 14.87 - **Nvidia**: 15.79 - **Apple**: 28.82 - **Tesla**: 64.71 Based on future cash flow, neither electric-vehicle maker Tesla nor iPhone titan Apple are particularly attractive. On the other hand, Meta and Amazon stand out for all the right reasons amid a historically expensive stock market. ![An Amazon delivery driver leaning out the window of their van while speaking with a fellow employee.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODA0MzgvYW16bi1kZWxpdmVyeS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Amazon. ## Meta and Amazon are screaming bargains amid a pricey stock market Meta Platforms is the cheapest Magnificent Seven stock, which likely reflects the immediate benefits it's recognized by integrating generative AI into its social media advertising platforms. Companies having the ability to tailor static or video messages to users are improving click-through rates and enhancing Meta's already stellar ad pricing power. Meta's predominantly ad-driven sales are also intricately tied to the health of the U.S. economy, which spends a disproportionate amount of time expanding. Advertising might not be a game-changing operating model, but businesses have demonstrated a willingness to pay a premium for Meta's services. Expand ![Meta Platforms Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01FVEEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: META Meta Platforms Today's Change (-1.80%) $-10.90 Current Price $595.20 ### Key Data Points Market Cap $1.5TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $594.60 - $609.93 52wk Range $520.26 - $796.25 Volume 580.6K Avg Vol 18.2M Gross Margin 81.94% Dividend Yield 0.35% Meanwhile, Amazon's ancillary segments have become its shining star. Though its dominant online marketplace still accounts for a majority of its revenue, cloud infrastructure services platform Amazon Web Services (AWS) generates the bulk of its operating income. Since AWS integrated generative AI and large language model solutions into its platform, sales growth for this considerably higher-margin operating segment has reaccelerated. When coupled with excellent subscription pricing power with Prime and sustained double-digit advertising sales growth, it's easy to see why Wall Street analysts expect Amazon's full-year operating cash flow to more than double between 2025 and 2028. Although bargains are few and far between at the moment, Meta and Amazon fit the bill. ### Related Stocks - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) - [AAPB.US](https://longbridge.com/en/quote/AAPB.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AAPU.US](https://longbridge.com/en/quote/AAPU.US.md) - [AAPD.US](https://longbridge.com/en/quote/AAPD.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLZ.US](https://longbridge.com/en/quote/TSLZ.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [TSLQ.US](https://longbridge.com/en/quote/TSLQ.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [AAPX.US](https://longbridge.com/en/quote/AAPX.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLS.US](https://longbridge.com/en/quote/TSLS.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [AAPW.US](https://longbridge.com/en/quote/AAPW.US.md) - [APLY.US](https://longbridge.com/en/quote/APLY.US.md) - [AAPY.US](https://longbridge.com/en/quote/AAPY.US.md) - [TSLI.US](https://longbridge.com/en/quote/TSLI.US.md) - [TSLO.US](https://longbridge.com/en/quote/TSLO.US.md) - [TSLW.US](https://longbridge.com/en/quote/TSLW.US.md) - [TSLY.US](https://longbridge.com/en/quote/TSLY.US.md) - [TSYY.US](https://longbridge.com/en/quote/TSYY.US.md) - [TYYY.US](https://longbridge.com/en/quote/TYYY.US.md) - [CRSH.US](https://longbridge.com/en/quote/CRSH.US.md) - [TSLP.US](https://longbridge.com/en/quote/TSLP.US.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [09366.HK](https://longbridge.com/en/quote/09366.HK.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [08:33 ETOmneky Launches Self-Service ChatGPT Advertising](https://longbridge.com/en/news/296107250.md) - [Amazon Thinks AI Is About to Change the Way We Shop. 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