Monthly mentions of the Magnificent 7 in Bloomberg Terminal news stories have fallen roughly 70% from their Q1 2024 peak to around 1,400, their lowest level since Q4 2023. Mentions had peaked at approximately 4,300 in Q1 2024. The average three-month pairwise correlation among the seven stocks has dropped from 0.78 to 0.27, indicating a growing divergence in how investors are valuing the companies. Citigroup strategists argue that the Magnificent 7 label is no longer relevant for positioning portfolios on the artificial intelligence theme.
Source: Read the original article
