"As a value investor, I have never seen cash machines as lucrative as these companies are... I don't see the cash machine slowing down," said Aswath Damodaran, emphasizing the exceptional profitability of the Magnificent Seven companies.
In 2023, the Magnificent Seven doubled in value, and they're up more than 60% in 2024. Damodaran refers to them as "insanely profitable," indicating strong confidence in their overall market performance.
Meta Platforms has excelled in stock buybacks among the Magnificent Seven, while Alphabet enhanced its shareholder returns through dividends, showcasing varying strategies among these tech giants.
Shareholder returns from substantial buybacks may not always translate into home runs, with each company's performance differing—some utilizing cash effectively while others struggle with their investment returns.
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