The Magnificent Seven nickname originated in 2023 for a group of dominant tech companies that have outperformed the market. All seven are leaders in their technology segments and are investing heavily in artificial intelligence, with expenditures that could drive future growth. Meta Platforms and Alphabet are highlighted as especially attractive long-term purchases because of distinct AI strategies and comparatively low valuations. Meta operates Facebook, Instagram, and WhatsApp, reaching more than 3.4 billion daily users and monetizing their attention through advertising. Meta employs AI for content recommendation and ad targeting, which increased user time on Instagram and Facebook and improved ad conversion rates.
All are leaders in their segments of the technology sector, and each is now investing heavily in artificial intelligence (AI) -- outlays that could fuel substantial growth down the line. Generally speaking, it would probably be a good idea to own all seven of these stocks over the long term, but Meta Platforms and Alphabet look like particularly attractive buys now due to their unique AI strategies and their relatively cheap valuations. When investors look back on this moment in a few years, here's why they might be glad they added those two names to their portfolios.
Meta owns a family of popular social networks, including Facebook, Instagram, and WhatsApp -- apps that are used by more than 3.4 billion people every day. The company monetizes those platforms by selling advertising slots to businesses, so it makes more money when users spend more time online, because that means they see more ads.
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