The “Magnificent Seven” Stocks
The “Magnificent Seven” refers to a well-known group of prominent stocks in the market. This collection features:
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Nvidia (NASDAQ:NVDA)
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Alphabet (NASDAQ:GOOG) (NASDAQ:Google)
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Apple (NASDAQ:AAPL)
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Microsoft (NASDAQ:MSFT)
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Amazon (NASDAQ:AMZN)
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Meta Platforms (NASDAQ:Meta)
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Tesla (NASDAQ:TSLA)
These companies frequently rank among the top ten globally. Tracking their market capitalization and behavior is crucial for successful investment strategies.
One aspect that’s generated buzz among investors is the possibility of stock splits, with chatter indicating that two companies from this group may split their stocks by 2026. So, who might those two be? Let’s delve in.
Since 2020, numerous companies in this elite group have split their shares, including Nvidia, Alphabet, Apple, Amazon, and Tesla. However, Meta Platforms and Microsoft have not participated in any splits for a while now.
Looking at Microsoft, its last stock split took place in 2003. Historically, they had a pattern of regular stock splits every few years, and their stock price is nearing $500, potentially hitting that juncture in 2026.
Meta Platforms, on the other hand, hasn’t executed a stock split since its IPO in 2012. Currently, it’s the costliest stock in the Magnificent Seven, priced at around $650 per share. It even hit nearly $800 before experiencing a sell-off following a disappointing earnings report last quarter.
I wouldn’t find it shocking if Microsoft or Meta announced stock splits come 2026. The hype that surrounds such announcements often leads to increased stock prices, but frankly, there may be stronger justifications for investing in either stock. I genuinely believe both show potential for solid returns heading into 2026.
Both Microsoft and Meta are forerunners in their respective fields, especially in artificial intelligence. Their strategies differ; Microsoft has adopted a neutral stance, becoming an advocate for AI technology without trying to impose it directly on users. For instance, they’ve teamed up with OpenAI, the creators of ChatGPT, to enhance some of their offerings, like Copilot for Office. They also provide alternative AI models through their Azure library. This strategy positions Microsoft favorably within the competitive AI landscape.
It’s clear Microsoft has a stake in OpenAI’s success, although they don’t rely solely on it. This diversified approach led to impressive revenue growth, particularly with Azure, which has been the fastest-growing cloud service among its peers. I believe this upward trend could persist into 2026, positioning Microsoft as a strong investment option.
On the flip side, Meta Platforms operates primarily through advertising on social media platforms like Facebook and Instagram. Their revenue has been climbing recently, significantly aided by advancements in AI technology.
While that growth is encouraging, there’s a catch. Investors are concerned about the hefty spending Meta has planned—particularly on AI data centers—projected to exceed $100 billion in 2026. This spending might raise eyebrows among investors, leading to potential sell-offs.
Nonetheless, if Meta can sustain its return on investments and showcase advancements in new technologies, particularly in AI glasses, it might just turn the tide and become an attractive stock for 2026, regardless of whether they announce a stock split.
Before considering an investment in Microsoft, it’s worth noting that some analysts have flagged alternatives as potentially more promising.
As a point of interest, if you had invested $1,000 in Netflix back in 2004, you’d now be looking at an impressive $487,089! Similarly, a $1,000 investment in Nvidia from its recommendation in 2005 would have ballooned to a staggering $1,139,053.
The Stock Advisor’s average return is 970%, which significantly outpaces the S&P 500’s performance of 197%. If you’re on the lookout for solid stocks, you might want to keep an eye on the latest recommendations.
In summary, while the potential for stock splits adds an exciting layer to the “Magnificent Seven,” the underlying business fundamentals could be the deciding factor for investors as they plan for 2026.
