While the tech rally of 2023 has continued into 2024, as well, it hasn’t been the same kind of secular rise we saw last year, where stocks rallied across the board. Among the “Magnificent 7,” Apple (AAPL), Alphabet (GOOG), and Tesla (TSLA) are all in the red this year, while Nvidia (NVDA) – which was the best-performing S&P 500 Index ($SPX) stock in 2023 – is leading the charge higher once again this year, and might just become the biggest U.S. company.
As for Alphabet, the Google parent’s stock has been the worst-performing Magnificent 7 stock over the last decade. Its valuation multiples have contracted over the last couple of years, and currently, GOOG trades at a next 12-months (NTM) price-to-earnings (PE) multiple of 19.4x. Its current multiples are the lowest among its Magnificent 7 peers, and they’re even below those of the S&P 500.
Historically, GOOG stock has traded at a premium to the S&P 500, as well…
