A Primer on

The Magnificent 7
 Table of Contents

Chapter: Page:
Introduction 04
Market Correlations 13
Nvidia 24
Tesla 56
Alphabet 92
Apple 126
Meta 164
Amazon 192
Microsoft 231
Wrapping Up 270

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 How to Read This Presentation

§ This presentation was designed to be read in chronological order, in one go, like a
flip book. Each section of this presentation builds on the prior and assumes no prior
knowledge about the discussed topic.

§ This presentation examines the Magnificent Seven companies and explores their
fundamental value as businesses in relation to their valuations and stock prices. It
first covers how sensitive their prices are to the broader market and
macroeconomic factors. Then, it evaluates each company’s individual performance
and trajectory in relation to its valuation.

§ By the end of this deep dive, you should have an essential and comprehensive
understanding of each of the Magnificent Seven companies, including how each
company became market leaders in their respective fields, the revenue engines
driving their results, how they allocate capital, and their competitive dynamics.

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Introduction
 As people and businesses came online
over the past three decades, the internet
enabled new ways for companies to operate
and distribute products on a global scale.

5
 The “Magnificent Seven” are the de facto winners of the internet era of business.

Nvidia Tesla Alphabet Apple Meta Amazon Microsoft

Founded in 1993 Founded in 2003 by Founded in 1998 Founded in 1976 Founded in 2004 by Founded in 1994 Founded in 1975
by Jensen Huang, Martin Eberhard, by Larry Page and by Steve Jobs and Mark Zuckerberg, by Jeff Bezos by Bill Gates and
Chris Malachowsky, Marc Tarpenning, Sergey Brin Steve Wozniak Eduardo Saverin, Paul Allen
and Curtis Priem and Elon Musk Dustin Moskovitz et al

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 These companies have pioneered new industries, hired
millions of people, and redefined how people live and work.

Nvidia Tesla Alphabet Apple Meta Amazon Microsoft

Mass produces Mass produces Created the best Mass produces Connects half Created the first Created the
cutting edge electric vehicles search engine and iconic products of the world's globally scalable most dominant
chips for AI as a vertically is synonymous with integrated population internet commerce operating system
with complete integrated with internet hardware-software through global and infrastructure and interface for
software automaker searching for everyday use social networking platform computers

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 Collectively, they’re valued by markets as
more valuable than the markets of entire countries.
Market Cap of M7 Vs. Equity Markets of Select Countries, June 2024

$16T

$9T

$6T
$5T
$4T $3T $3T $3T

M7 China Japan India France UK Canada Germany

Source: Bloomberg 8
 And their performance is so influential that they’ve
generated the bulk of the S&P 500’s returns from 2023 to 2024.
S&P 500 Equal Weight vs S&P 500 Index vs M7 ETF, Jan 2024 to Dec 2024

80%

70%

60%

50%

40%

30% 27%

20%

10%

0%
Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24

Source: Yahoo Finance 9

10.00%

5.00%

0.00%

-5.00%

-10.00%

-15.00%

Mag7
-20.00%

Source: Yahoo Finance 10

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 This deep dive will explore how the M7 relates to the broader market
as well as each of the individual companies in relation to their valuations.

β α
Sensitivity of a Return generated
stock’s price to by a company
overall market beyond what the
movements. market explains.

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Read the full deep dive at
chamath.substack.com

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 This document is provided for educational purposes only. Nothing contained in this document
is investment advice, a recommendation or an offer to sell, or a solicitation of an offer to buy,
any securities or investment products. References herein to specific sectors are not to be
considered a recommendation or solicitation for any such sector. Additionally, the contents
herein are not to be construed as legal, business, or tax advice.

Statements in this document are made as of the date of this document unless stated
otherwise, and there is no implication that the information contained herein is correct as of any
other time. Certain information contained or linked to in this document has been obtained from
sources believed to be reliable and current, but accuracy cannot be guaranteed.

This document contains statements that are not purely historical in nature but are “forward-
looking statements” or statements of opinion or intention. Any projections included herein are
also forward-looking statements. Forward-looking statements involve known and unknown
risks, uncertainties (including those related to general economic conditions), assumptions and
other factors, which may cause actual results, performance or achievements to be materially
different from those expressed or implied by such forward-looking statements. Accordingly, all
forward-looking statements should be evaluated with an understanding of their inherent
uncertainty and recipients should not rely on such forward-looking statements. There is no
obligation to update or revise these forward-looking statements for any reason.

This document also contains references to trademarks, service marks, trade names and
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Disclaimer
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