Dubbed the “Magnificent Seven” by Bank of America (BAC) strategist Michael Hartnett, tech giants Apple (AAPL), Alphabet (GOOGL), Nvidia (NVDA), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) emerged as leaders of the bull market that kicked off early in 2023, sparked by massive enthusiasm over the generative AI boom. Despite notable underperformance this year in names like TSLA, an ETF tracking the group has surged 48% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 22.7% rise.
Among this elite group, one analyst says AMZN stock could be set to soar higher, fueled by its live-streaming platform, Twitch. In a recent note, Needham’s Laura Martin said she sees the upstart YouTube rival as Amazon’s $46 billion “hidden gem.” Martin upped AMZN’s target price to $210, encouraged by expanding service margins, particularly from Twitch and artificial intelligence (AI) ventures that are enhancing Amazon’s overall value.
