Amazon is rated A tier, considered the favorite Mag 7 business due to strong operating income growth, its AI integration in the physical world with robotics, and valuable free options like advertising and custom silicon.
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Most Mag 7 Stocks Are Not Cheap (Ranked)
Investing Moats with VarunMay 1, 2026
The creator ranks the "Mag 7" stocks based on valuation and hidden assets. Google (GOOGL) and Microsoft (MSFT) are placed in B tier, considered fairly valued but not cheap. Nvidia (NVDA) is moved to C tier due to geopolitical risks and competition. Apple (AAPL) is upgraded to B tier due to its AI edge potential. Meta (META) is rated S tier, seen as cheap with significant unmonetized optionality. Tesla (TSLA) is a D tier due to declining revenue and high valuation for unproven ventures. Amazon (AMZN) is ranked A tier, considered the favorite due to its strong operating income, AI in the physical world, and free options.
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Tesla is a clear D tier due to declining revenue, negative free cash flow, and an extremely high valuation that prices in unproven optionality like robo taxis and Optimus.
Apple is upgraded to B tier, benefiting from its strong ecosystem moat and potential upside if AI runs on the edge (phones) rather than the cloud, as indicated by strong Mac demand.
Nvidia is moved to C tier, considered fairly valued with strong revenue growth and free cash flow, but the creator lacks confidence due to unclear competition, geopolitical risks, and cyclicality.
Microsoft is placed in B tier, with fair valuation for its business performance including Azure and AI growth, but concerns exist regarding Copilot adoption and the OpenAI partnership.
Meta is rated S tier and considered cheap due to its strong ad business, significant unmonetized assets like WhatsApp, and Zuckerberg's leadership, with potential in AI and future computing.