Magnificent 7 Stocks: Expert Predicts No More Bear Cases

Here’s a summary of the provided text:

The “Majestic 7” AI Rally is Showing Signs of Weakening

* Downgrades: Rothschild & Co Redburn downgraded Amazon (AMZN) and Microsoft (MSFT) to “neutral” from “buy,” signaling a loss of confidence in their potential.Their stock prices dropped 4.4% and 2.7% respectively on ​a generally down day for the market.
* AI Rally Concerns: The AI-driven market rally, which had pushed indexes to record highs, is already‌ losing momentum. Concerns include high valuations, comparisons to the dotcom‌ bubble, insider stock sales, and uncertainty about the returns on AI investments.
* Timing: This negative report comes right before Nvidia (NVDA) releases its earnings, adding to the anticipation and ⁢potential for further market reaction.
* Key Takeaway: The⁣ article suggests there’s still potential in memory ⁢and data storage stocks, though this part is cut off in ‍the provided text.

Essentially, the article highlights growing skepticism about⁤ the sustainability of the AI stock boom, notably within the group known as the⁢ “Magnificent 7.” The downgrades of ​Amazon ‌and Microsoft are seen as a warning sign ahead of ‌Nvidia’s earnings report.