Ranking the Magnificent 7 Stocks: Who Could Rise? Who Could Fall?

Welcome back, friends...

Today we have a special issue announcement.

And it begins with a discovery back in 1998 during the rise of the Internet…

When mathematician Albert-László Barabási noticed something strange.

A strange quirk in how the world works.

A quirk that is common sense to airline pilots like Captain Clarence Oveur or Roger Murdock.

The quirk?

Some airports handle far more traffic than others.

They are bigger. More flights in. More flights out.

And some airports have little traffic.

Fewer flights in. Fewer flights out.

Or, in Barabási’s technical words: “Real world networks are not random, but scale-free, dominated by hubs.”

So it’s no surprise Oveur and Murdock were flying from a hub in Los Angeles to a hub in Chicago on that fateful day they ate the fish.

Statistically, those two airport hubs capture a massive slice of U.S. traffic.

This same airport pattern repeats in many other real world networks: A handful of giant hubs, and a long tail of smaller connections.

This is true of social networks... digital networks... distribution networks... energy grids… chip supply networks… cloud infrastructure… app ecosystems and more.

And this pattern also explains the dominance of the Mag 7 stocks over the S&P 500.

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With the continued evolution of technology each the Magnificent 7 stocks have become hubs of different types of economic activity.

Each of these companies, in its own way, has built out different scale-free networks:

• Amazon (AMZN): The twin hub of e-commerce and cloud infrastructure.

• Apple (AAPL): A hub of devices and services. The iPhone helped them the world’s most profitable passenger cabin.

• Meta (META): A hub of human attention... with billions wired into its social graph.

• Google (GOOG): The hub of all the world’s information and ads.

• Microsoft (MSFT): The enterprise software hub -- where business still runs on Windows, Office, and now the cloud.

• Tesla (TSLA): A potential future hub in a new age of AI, robotics, and batteries.

• Nvidia (NVDA): The O’Hare of AI -- the hardware hub every model and data center must pass through.

Some of these hubs are entrenched. Some are about to experience turbulence. And some could fail.

And that’s what brings us to our special issue announcement.

This article is your boarding pass for a special 8-part series on the Mag7 stocks.

The next 7 issues will explore one of the Mag7 stocks as a network hub…

How it grew, what keeps it connected, and where a potential cascading failure could lie ahead.

And we'll wrap it all up in one final issue and by ranking them all for you.

Why is this important for investors to consider?

A hub looks strong until the wrong connection breaks.

Knock out a small spoke and the system hardly notices.

But if one of the main hubs goes down, the whole network can start to unravel.

Pressure shifts onto the remaining spokes, and before long the entire structure gives way.

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That’s the real risk with these companies as we enter the age of AI.

They look invincible -- until a competitor or a disruptive technology takes aim at their biggest hubs.

The last thing investors want is to be holding shares of one of these Mag7 stocks when it unravels.

That’s why we at Sage Research will help you chart the path ahead -- identifying which hubs are secure, and which could be a few broken spokes away from collapse.

In this series, you’ll discover some flights will be smooth...

But others might end with someone asking if anyone on board knows how to fly the plane.

This is your official boarding pass.

And your first stop will be Google (GOOG) in our next issue.

Keep an eye on your inbox.

Until then...

Always be prospering,

socrAItes

Publisher, Sage Research (dot) AI

P.S. If you've never heard the name Albert-László Barabási before and are curious to learn more about network theory...

Don't miss this video.

Oh, and if you are visual learner... you definitely DON'T want to miss it!