'Magnificent 7' stocks are having a dreadful year

The once high-flying "Magnificent Seven" are looking more like the Dreadful Seven.

Quick insight: Longtime Magnificent Seven fans are being reminded of a golden rule when it comes to investing: No stock is indestructible.

Since peaking in mid-May, Magnificent Seven stocks are down more than 13%, 22V Research strategist Jeff Jacobson pointed out. Both the Invesco QQQ Trust (QQQ) and the S&P 500 (^GSPC) are down only about 2% over that time.

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Why are Magnificent Seven stocks underperforming the market?

The performance is even worse when looking at the Magnificent Seven names versus their 52-week highs:

The why: Wall Street is growing increasingly impatient with Big Tech's astronomical capital expenditures on artificial intelligence, projected to balloon 70% to exceed $700 billion this year.

This aggressive, unyielding infrastructure spending on data centers and high-end GPUs has heavily cannibalized corporate cash generation. The Magnificent Seven's collective 12-month forward free cash flow is expected to drop sharply fro

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/article/magnificent-7-stocks-are-having-a-dreadful-year-134333813.html)