View Original Post by Jeran Wittenstein and Ryan Vlastelica, Fri, March 6, 2026 at 2:53 PM EST
(Bloomberg) — For most of the past decade, investors have had to pay exorbitant prices to own a piece of the world’s biggest technology companies. But that’s changing as AI euphoria gives way to skepticism.
Big Tech stocks have been underperforming for months due to concerns about ballooning spending on artificial intelligence and a rotation into sectors that tend to do well in an expanding economy. An index of the so-called Magnificent Seven giants is down more than 7% since the end of October while the S&P 500 Index is roughly flat. That’s a reversal from 2023 and 2024, when the Mag Seven tripled or quadrupled the S&P 500’s return.
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“It’s amazing the transformation we’ve seen in markets,” said Brett Ewing, chief market strategist at First Franklin Financial Services. “There’s been a complete repricing of the Mag 7 because they underwent a transformation from asset-light companies with massive cash flows, to companies that have been forced to move at an accelerated pace into becoming asset-heavy.”
Article posted: https://finance.yahoo.com/news/big-tech-stocks-were-expensive-103137428.html