The recent market decline has pushed Big Tech valuations lower, but many traders believe there’s still room to fall. The Magnificent Seven—Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla—are now trading at 26 times forward earnings, above the 2018 and 2022 lows of 19 times.
📉 Key Takeaways:
- Nasdaq 100 is down 11% from its February high.
- Apple saw its worst weekly decline in two years.
- Investor Sentiment Shifts: Optimism about Trump-era economic policies has faded.
- Wall Street Adjusts Forecasts: 2025 profit growth estimates for Big Tech have been trimmed from 24% to 22%.
Despite past rebounds, concerns persist. Tesla remains the most expensive, trading at 82 times earnings, while Alphabet is the cheapest at 18 times—still above 2022 lows.
Analysts caution that uncertainty and AI-related risks may keep stocks under pressure. Will this dip be another buying opportunity, or is more downside ahead?