Our Take On The Mag 7

Milad Fakurian - Unsplash

The mega-cap Mag 7 ETF (MAGS), made up of Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), NVIDIA (NVDA), and Tesla (TSLA), is down roughly 12% from its all-time closing high on 10/29 versus a drawdown of less than 4% for the S&P 500 (SPY).

As shown below, MAGS has been in a downtrend for the last four months, and last Friday it closed at its furthest level below its 200-day moving average since the tariff tantrum last April.

While a decline of 12% is nothing to sneeze at, keep in mind the massive run that the mega-caps have had since the AI Boom kicked off in late 2022. Near the end of 2022, the Mag 7 stocks had a combined market cap of $6.6 trillion. That has grown more than threefold over the last few years to $22.3 trillion at its 2025 high. During the recent selloff, the Mag 7 has lost $2.1 trillion in market cap but remains above $20 trillion.

As shown below, all seven Mag 7 stocks were down at least 3% year-to-date heading into this week, and six of seven were in oversold territory. Amazon just barely managed to close in neutral territory last Friday, even though it's still 7% below its 50-DMA.

With so many investors having significant exposure to these seven mega-caps, and those that don't have exposure wondering whether now is the time, below are our thoughts on current entry points from either a short-term or long-term perspective.