Most of the “Magnificent Seven” stocks are lagging the S&P 500 this year—only Apple and Alphabet are outperforming. If you’re betting on one, Microsoft’s the pick: despite a recent 17% dip, its AI and cloud momentum (Azure revenue over $100B, Copilot users doubling) is reigniting investor confidence. Meanwhile, Tesla’s stock is a red flag—negative cash flow, plummeting profits, and a sky-high P/E of 277 times earnings, fueled by unproven bets like robotaxis and robots. Avoid until those future plays deliver real traction.

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