The Magnificent Seven: US tech stocks are climbing despite the threat of a bubble – is it still worth getting involved now?

The Magnificent Seven: US tech stocks are climbing despite the threat of a bubble – is it still worth getting involved now?

According to a report by t3n.de, tech companies are very successful on the stock market despite rising interest rates. The so-called “Magnificent 7”, which includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta, have recorded strong price increases in recent years.

The fact is that the US IT sector has made great profits and the prices of the companies mentioned have risen enormously. However, Albert Edwards, strategist at the major French bank Société Generale, warns of an impending bubble that could burst in 2024. He sees Tesla in particular as overvalued and fears that a bursting of the bubble could plunge the entire US market into a downturn.

However, it is important to mention that other analysts have a more relaxed view of the situation and are more positive about the outperformance of tech companies. The Handelsblatt examined the valuations in more detail and came to the conclusion that Tesla in particular is overvalued, while the other companies have solid balance sheet data.

The seven's valuations and their balance sheet data in the US market suggest that Tesla is overvalued, while the other companies have posted solid profits. It remains to be seen whether the warnings of a bubble will come true or whether the tech companies can continue their success story.