This business has so many dominant segments that support ongoing success.
This business has so many dominant segments that support ongoing success.
The "Magnificent Seven" combined represent more than one-third of the entire market capitalization of the S&P 500 index. When investors call out concentration at the top, it's these businesses that get the finger pointed at them. Seven companies have an outsize impact on equity returns.
But this group is separated for a reason. While each business is unique, they are characterized by industry dominance, technological prowess, incredible profits, and a huge focus on artificial intelligence (AI). And they operate from a position of financial strength.
If I could own only one Magnificent Seven stock for the next decade, it would be this one. It might be the ultimate technology enterprise to buy.
Examine Alphabet's key business lines
In my view, Alphabet (GOOGL -2.47%) (GOOG -2.32%) shines brighter than its peers. This company doesn't make money from a single activity. It's a comprehensive technology juggernaut; just look at the key business lines.
YouTube is one of the most valuable segments. Investors shouldn't downplay how successful it has become.
According to Nielsen data, YouTube commanded a 14.2% share of daily TV viewing time in the U.S in July. It has had a sizable lead on Netflix in this regard for quite some time. And it monetizes that viewership mainly through ads, with some help from subscriptions.
Then there's Waymo, which is winning the autonomous driving race. Last month, this service was completing 500,000 rides per week, running laps around rival Tesla. Waymo is currently available in 15 U.S. cities, with plans to expand domestically and internationally.
We can't forget the company's crown jewel, Google Search. This is what put the business on the map. It continues to dominate today, representing 53% of Alphabet's revenue. The platform handles billions of queries each day.
Averytin News Financial update.