Lates News

Goldman Sachs' latest research found that the collective valuation of stocks of Apple (AAPL) and its fellow "Tech Seven Giants" has fallen to its lowest level in seven years. Goldman Sachs strategist David Kostin pointed out that the forward P/E ratio of the Tech Seven Giants is currently 28 times compared to the S&P 493 index's P/E ratio of 20 times, representing a 43% premium. This premium level is in the 30th percentile over the past decade. This means that Apple, Alphabet (GOOG), Amazon (AMZN), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) have the lowest NTM valuation multiples since 2018. Kostin believes that lighter position allocations in the short term, cheaper valuations compared to the past two years, and the renewed enthusiasm for AI after first quarter earnings may drive the prices of the seven giants upward. However, there are risks on both sides: ongoing antitrust investigations in Europe and the United States against Alphabet, Apple, Microsoft, and Meta may cast a shadow, and competitive news such as Apple's AI search ambitions leading to a 7% drop in Alphabet's stock price in a single day highlight the vulnerability within this group. (Global Market Report)