Mastercard Beats the 'Magnificent Seven' with Steady Revenue Stream

The 'Magnificent Seven' stocks like Microsoft and Amazon may not be the best long-term bet for investors. These megacap companies have surged due to the artificial intelligence (AI) boom, but their future success is heavily dependent on AI spending.

Mastercard, on the other hand, offers a more diversified investment opportunity. The company's revenue stream is steady and its network was built long ago, resulting in high margins. For instance, Mastercard reported $4.4 billion in net income on $9.3 billion in net revenue for the quarter ending June 30, 2026, with a net margin of over 47%.

Mastercard has a growth edge over its competitor Visa, with analyst forecasts calling for 52% EPS growth between 2026 and 2029 compared to Visa's 46.2% EPS growth during the same period. While there is risk in investing in Mastercard, its potential for long-term growth makes it a more attractive option.