What's Going On With Magnificent 7 Stocks?

Aswath Damodaran, finance professor at New York Univerisity’s Stern School of Business, told Bloomberg Television on Monday that he recommends buying any of the Magnificent Seven stocks on dips. 

What To Know: Corrections will occur and "I'd suggest that when that happens you find a way to add at least one, maybe two or three of these companies, because these are so much part of what drives the economy and the market," Damodaran said.

Read Next: Art Cashin’s Lessons: Cuban Crisis Trades To Timeless Wall Street Wit

It has been difficult to buy the dip on a Magnificent Seven stock as the tech giants have climbed throughout 2024. The Roundhill Magnificent Seven ETF MAGS offers equal-weight exposure to the Magnificent Seven stocks and is up nearly 60% year-to-date. 

"As a value investor, I have never seen cash machines as lucrative as these companies are," Damodaran said. "And I don't see the cash machine slowing down."

Apple, Inc. AAPL and Nvidia Corp. NVDA continue jockeying for the top position as the largest company in terms of market capitalization. Apple currently holds the largest market cap at $3.67 trillion, while Nvidia is in second place with a market cap of $3.44 trillion. Microsoft Corp. MSFT remains in third with a market capitalization of $3.21 trillion. 

Tesla, Inc. TSLA, formerly the laggard of the seven, has gained more than 40% over the past month. CEO Elon Musk has grown into a trusted advisor of President-elect Donald Trump and investors are betting Tesla will benefit under the Trump administration. 

Though not quite a dip, Alphabet, Inc. GOOGL GOOG shares have remained flat over the past month as the company faces ongoing litigation and the potential sale of its Chrome browser in a federal antitrust lawsuit. 

Read Next: 

• Walmart, Target, Bath & Body Works Stand Out As Black Friday Winners: Analysts

Photo: Shutterstock