Stocks in Turmoil, but Attractive Setups Emerge (META, GOOGL, AMZN)

Markets are under pressure today as escalating tensions in the Middle East unsettle investors. Equities are selling off broadly, from the US to Europe to emerging markets, as risk appetite contracts and capital moves defensively. Yet periods of heightened uncertainty often create the most compelling entry points for disciplined investors.

In recent months, I have consistently highlighted opportunities in energy and gold as geopolitical risks and structural supply dynamics supported those trends. Those themes remain intact, and I do not believe they are fully exhausted. That said, for investors sitting on meaningful gains, this type of volatility can present an opportunity to rebalance and redeploy capital into areas where sentiment has been overly depressed.

The most compelling opportunity I see at present lies in mega-cap technology, particularly Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) though the broader Magnificent Seven (MAGS) cohort appears increasingly attractive. The group has traded sideways to lower for more than six months as capital rotated toward international equities and cyclical sectors. In my view, that rotation is tactical rather than structural, and US equity leadership is likely to reassert itself.

Concerns around AI overspending and elevated valuations drove much of the consolidation. However, while share prices stagnated, revenue and earnings growth continued and as a result, valuations have reset meaningfully. At the same time, the AI buildout has not slowed and if anything, capital commitments, infrastructure expansion and usage have accelerated.

The combination of moderated valuations, durable growth tailwinds both within and beyond AI, and subdued investor sentiment has created an unusually attractive setup in the Magnificent Seven, particularly in Amazon, Alphabet, and Meta Platforms.

Image Source: Zacks Investment Research

Meta Platforms: The Stock they Love to Hate

Meta Platforms has long been a lightning rod for extreme sentiment, often skewed to the downside. Whether concerns center on spending cycles, regulatory scrutiny, or political controversy, the stock routinely becomes a battleground. Yet through each cycle, the underlying business continues to demonstrate remarkable durability.

At its core, Meta remains an exceptional cash generating business. The company operates at wide margins, produces enormous free cash flow, and continues to grow at a pace that is impressive given its scale. Despite that performance, the stock currently trades at roughly 22x forward earnings, which is below its 10-year median multiple of 24.5x and below the broader market average.

That valuation stands in contrast to a strong growth outlook. Earnings are projected to expand at approximately 21.7% annually over the next three to five years while revenue is expected to rise about 24% this year and another 18.4% next year. Investors are paying a market multiple for above-market growth.

The technical picture reinforces the thesis. On a weekly chart, META appears to be forming a clear consolidation, with resistance near the $700 level. A decisive breakout above that threshold would likely signal the beginning of the next sustained advance.

Image Source: TradingView

Amazon: Shares Trade at the Lowest Level in Company History

Over the past five years, Amazon has been the relative laggard within the Magnificent Seven. Despite steady revenue expansion and strengthening fundamentals, the stock has struggled to command sustained investor enthusiasm. Leadership transitions and heavy investment cycles have contributed to periods of skepticism, particularly following the founder’s departure from the CEO role.

Yet the underlying business has continued to improve. Today, Amazon trades at approximately 26.8x forward earnings, the lowest forward multiple in its history. That valuation reset has occurred even as operational performance has strengthened. The company remains deeply embedded in multiple secular growth themes, most notably cloud computing and artificial intelligence infrastructure.

Amazon Web Services, the world’s leading cloud platform, is seeing renewed acceleration in growth as enterprise AI adoption expands. Demand for compute and storage tied to AI workloads is driving incremental capacity investments, reinforcing AWS’s strategic position at the center of the infrastructure stack.

Meanwhile, consensus estimates project earnings to grow at roughly 17.2% annually over the next three to five years. Revenue is expected to climb approximately 12% this year and again next year, a healthy growth rate for a company of Amazon’s scale.

In short, Amazon is priced at its most reasonable valuation ever, even as core growth drivers remain firmly intact.

Image Source: Zacks Investment Research

Alphabet: The Juggernaut AI Stock

Alphabet has quietly reasserted itself as a leader within the Magnificent Seven, and notably, it has been the only member of the group to consistently outperform the broader market in recent months.

The company’s transformation from perceived AI laggard to vertically integrated AI powerhouse reshaped investor sentiment last year. By leveraging its custom Tensor Processing Units (TPUs) to train and deploy models at scale, Alphabet built a fully integrated ecosystem spanning infrastructure, foundation models, cloud distribution, and consumer applications. Its large language model, Gemini, has rapidly evolved into one of the most competitive models in the market.

Perhaps most importantly, the company’s core search business, which was widely viewed as vulnerable to AI disruption has instead been enhanced by AI integration. Improved user engagement, monetization capabilities, and product depth have supported resilient advertising demand. As a result, top line growth is now projected to expand in the high-teens both this year and next, a notable acceleration for a business of this size.

Earnings trends further support the bullish case. Consensus forecasts have inflected higher over the past 30 days, reflecting strengthening confidence in both revenue durability and operating leverage. While the Zacks Rank has not yet fully captured the improving revision breadth, estimate momentum is clearly building.

With accelerating growth, rising earnings expectations, and a deeply entrenched position across the AI stack, Alphabet has emerged as a structural leader within mega-cap technology. At present, there is little evidence suggesting that leadership role is poised to change in the near term.

Image Source: Zacks Investment Research

Should Investors Buy Shares in AMZN, GOOGL and META?

Periods of market stress tend to compress valuations indiscriminately. When geopolitical headlines dominate and capital moves defensively, high-quality growth franchises often get marked down alongside weaker businesses. For long-term investors, that dynamic can create asymmetric opportunity.

In the case of Amazon, Alphabet, and Meta Platforms, the underlying fundamentals remain intact. Revenue growth persists, earnings estimates are stable to rising, and each company maintains dominant positioning within the AI ecosystem and broader digital economy. At the same time, valuations have moderated meaningfully after a six-month consolidation.

That combination of durable growth, improving estimate trends, and reset multiples is rarely available in market leaders of this scale. For investors willing to look beyond short-term headlines, the current pullback may prove to be an opportunity rather than a warning.