The adage of “the bigger they are, the harder they fall” has been holding true for the S&P 500’s biggest names, or more specifically, the Magnificent Seven. However, there are some names that could be worth buying, as listed by Yahoo Finance.
Because of their large market caps, the Magnificent Seven has been dragging stocks into the red in the first quarter of 2025. Ongoing concerns surrounding inflation and tariffs continue to bring market uncertainty. That’s giving investors reason to seek safe haven assets like quality bonds and gold.
“US stocks just had their worst quarter since autumn 2022,” noted Yahoo Finance. "In Q1 of 2025, the S&P 500 dipped 4.6%, while the Nasdaq Composite index — dominated by ‘Big Tech’ stocks — dived by 10.4%.
The broader markets might be wary of all the red in the stock market. But it could be a prime opportunity for traders to pick up Magnificent Seven names on the cheap. Motley Fool presented four names traders may want to look at once the sell-offs stop: Nvidia, Amazon, Google, and Meta.
Artificial intelligence should persist as a long-term trend. And Nvidia should continue benefiting as it has been the past few years. As Motley Fool noted, the primary catalyst is its growth trajectory, and its latest revenue generation supports that notion.
Nvidia isn’t the only beneficiary of AI growth. Amazon could also benefit, especially if its Amazon Web Services platform continues to see growth. Another growth driver is cloud computing. Combined with AI, the duo could help Google’s revenue projections. Meta is also building out its own AI platform, which can help proliferate its ad revenue.
4 Pairs of Single-Stock ETF Options
With the aforementioned stocks in mind, Direxion can give traders the tools to game the markets, whether these companies trend higher or lower in the short term. The ETF provider’s suite of single-stock ETFs add double the exposure to bullish moves, while offering inverse exposure for bearish moves due to a negative earnings report or other news. Either way, this gives traders the added flexibility and tools necessary for profit maximization.
- Direxion Daily NVDA Bull 2X Shares (NVDU )/ Direxion Daily NVDA Bear 1X Shares (NVDD )
- Direxion Daily AMZN Bull 2X Shares (AMZU )/ Direxion Daily AMZN Bear 1X Shares (AMZD )
- Direxion Daily GOOGL Bull 2X Shares (GGLL )/ Direxion Daily GOOGL Bear 1X Shares (GGLS )
- Direxion Daily META Bull 2X Shares (METU )/ Direxion Daily META Bear 1X Shares (METD )
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
