Look at the Mag7 drawdown from highs:
• Microsoft: -28% (Bear Market)
• Amazon: -21% (Bear Market)
• Meta: -19%
• Tesla: -17%
• Google: -13%
• Nvidia: -12%
• Apple: -9%These 7 stocks make up 33% of the entire S&P 500.
Yet, the S&P 500 is down less than 2%.
We are…
— CooperBaggs 💰🍞 (@edgaralandough) February 20, 2026
S&P 500 REMAINS EXPENSIVE, BofA SEES FURTHER DOWNSIDE
The S&P 500 is still costly, expensive on 18 of 20 valuation metrics, with four near record highs, according to Bank of America.
• BofA expects earnings-driven PE compression despite robust EPS forecasts (+14%).
— *Walter Bloomberg (@DeItaone) February 20, 2026
https://twitter.com/theUMreal/status/2025125613707669989
Market strategists now label the biggest tech stocks as “dead money,” urging a move into value and defensive sectors
Technical strategist Bran Shannon thinks investors need to look for opportunities outside big tech.
He said the Magnificent 7 cohort of AI giants is past its prime, labeling it “dead money.”
In a recent podcast appearance, Shannon shared the other sectors he says investors should pursue.
As Wall Street tries to move past the unexpected sell-off in software stocks that hit markets earlier this month, one strategist is urging investors to look outside tech altogether.
In a recent appearance on the The Noble Update Podcast, Brian Shannon — founder of the technical-analysis platform AlphaTrends — argued that the dominant era of the Magnificent 7 is fading.
“I don’t want to short Microsoft but I certainly don’t want to buy it,” he told the podcast host, George Noble. “It’s dead money at best. Maybe it gets a bounce but there’s bigger money flowing out of it on longer term time frames.”
Shannon also ascribed the “dead money” label to Nvidia, highlighting what he sees as a lack of real growth. He also noted that the stock has essentially been stuck between $165 and $200 per share since August of 2025, and will likely stay around there.
He added that, in his view, other chipmakers such as Sandisk and Micron have taken Nvidia’s mantle and have substantially outpaced it since August. But Shannon still cautions investors, using Sandisk’s bull run to illustrate the trend of companies surging before a correction.
Microsoft, Nvidia, the whole gang have plateaued while smaller players quietly capture real growth. The giants are now price anchors, not engines.