The “Magnificent Seven” group of Big Tech stocks used to be cool.
But as with any good investing acronym, Magnificent Seven now seems long in the tooth and ripe for a shot of innovation, not unlike the companies that drive the group
It could be time for investors to embrace the FAB 10. “SpaceX now belongs in the same conversation as the world’s most important companies,” Vanda Research said. “If the last few years were dominated by the Magnificent 7, SpaceX’s IPO was perhaps the clearest sign yet that investors are starting to focus on what we call the FAB 10 (Frontier AI & Big Tech 10). This is the Mag 7 plus SpaceX, as well as the future listings of OpenAI and Anthropic. Together, these companies represent the future of AI & tech that will define the next decade.” SpaceX (SPCX) has quickly made a case for investors to embrace the FAB 10 and begin to forget the Mag 7, which includes Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).
Shares of Elon Musk’s rocket company are up 5% in premarket trading on Tuesday, indicating an open to above $200 for the first time. At this level, SpaceX would open with a more than $2.9 trillion market cap. A $2.9 trillion market cap for SpaceX would put it roughly in line with tech heavyweight and nicely profitable Microsoft, with a $2.95 trillion market cap, per Yahoo Finance AlphaSpace.