Amazon Surpasses Meta as Top 'Magnificent Seven' Stock

The 'Magnificent Seven' stocks have been driving the stock market to new heights. These trillion-dollar businesses include Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA). To determine their attractiveness, we use projected cash flow as a measure.

According to Wall Street's consensus estimates for 2027, the ranking from most attractive (cheapest) to least attractive (priciest) is: Amazon at 10.91 times estimated forward-year cash flow, Meta Platforms at 11.84, Microsoft at 15.39, Nvidia at 15.6, Alphabet at 16.11, Apple at 30.48, and Tesla at 80.2.

Amazon has recently surpassed Meta as the most attractive Magnificent Seven stock by future cash flow. This is due to its strong performance in cloud infrastructure services through Amazon Web Services (AWS), which has reaccelerated sales growth. AWS also generates higher-margin operating segments than online retail sales, allowing Amazon's cash flow to grow faster.

META's shares have surged after the release of its personal AI assistant Muse, but its foundational social media platforms remain a significant contributor to ad-pricing power. Meta attracts 3.6 billion daily active users across its family of apps, making it an attractive investment opportunity.