Episode summary
Our Favorite Mag 7 Stocks to Buy Right Now
Zacks Market Edge
· · 37 min · Hosts: Tracey Ryniec, Ethan Feller
Summary
The host and guest argued that the MAG 7 is back in favor after a stretch when investors worried about the cost of AI infrastructure and questioned the payoff from heavy capex. They said recent earnings have eased those concerns, especially at Alphabet, Amazon, Meta Platforms, Microsoft, and NVIDIA, where cloud demand, AI products, and margin expansion are helping justify spending. The guest said the market is becoming more comfortable with the return on investment story, and that the group is still pulling in flows as the MAGS ETF pushes toward highs.
Their favorite names were Meta, NVIDIA, and Microsoft. The guest liked Meta most because of its new agentic product, Muse, and the possibility that it can monetize AI through its massive user base and small-business ecosystem. The host preferred NVIDIA for its continuing earnings and revenue momentum, while the guest agreed it still screens as a standout on growth and margins. Microsoft was the guest’s third pick because of its revamp of 365 products and a broader AI ecosystem tied to Office, Excel, PowerPoint, and Teams.
They also pushed back on the idea that AI is in a bubble. The guest said the buildout still looks undersupplied, while the host said the real test will be whether future earnings reports continue to raise guidance. Both suggested the AI trade remains driven by execution, not hype, and that the biggest stocks may still have room to run.
Key takeaways
- The guest said Meta Platforms is his favorite MAG 7 name because Muse and other agentic products could deepen monetization across its 3 billion daily active users.
- The host said NVIDIA still looks attractive despite its gains because earnings growth near 93% this fiscal year and more than 50% next year support the stock.
- The guest said Microsoft is gaining traction again as its new 365 AI platform integrates chat-style tools into Excel, PowerPoint, and Teams.
- The host said worries that AI would crush Alphabet’s search and advertising business have faded because growth has accelerated instead.
- The guest said the AI buildout still looks undersupplied, so he does not think the market is in a bubble yet.
Notable quotes
“what's the return on investment for all of this crazy capex spending”
“for me, Meta really stands out”
“it really takes it to the next level versus a chatbot”
“I absolutely don't think it's too late”
How the episode opens
Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.
I'm your host, Tracy Reinick, and this week I'm joined by someone, Ethan Feller, who's a stock strategist here at Sachs. He's joining me to talk about the MAG Seven. And I asked him on this week to talk about it because it was left for dead.
Even though, yeah, we've covered it here and there this year in 2026, but it's still not really in favor, but it's recently been hitting new all-time highs. So maybe it's back in favor and we wanted to talk about it and give you what we think are the top stocks out of the Mag 7 that you should be watching here in 2026. So welcome Ethan.
Thanks for having me on, Tracy. Always a pleasure to join you here on the podcast.
I know, right? Um it's good to have someone else on so that they don't have to stare at my face. Um, and also if my voice sounds kind of scraggly this week, it is because I came down with something last week.
I literally couldn't talk, but it's back. The voice is back kind of. So, if it sounds strange to those of you listening or even watching, that is why.
But I feel fine. It's just the voice is a little bit uh just not quite there yet. Um, so, okay, the Mag 7, what what is going on?
Like, I thought it was dead. Uh, everybody was ignoring it. It was like the worst year in like 20 years for Microsoft at one point.
Uh, some of them are just, you know, in the total doldrums for the year. Even Nvidia a couple months ago wasn't even doing that well.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- mag 7 stocks
- stock picking
- meta platforms
- microsoft
- nvidia
Companies and tickers mentioned
- META
- MSFT
- NVDA
- Meta Platforms
- Microsoft
- NVIDIA
Watch the episode
Watch “Our Favorite Mag 7 Stocks to Buy Right Now” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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