2 "Magnificent Seven" Stocks to Buy on the Dip

In the ever-evolving landscape of the stock market, the "Magnificent Seven" stocks—Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla—have consistently been at the forefront of innovation and market growth. However, recent market dips and economic uncertainties have left investors questioning the long-term prospects of these tech giants. Despite the challenges, there are still opportunities to buy the dip and capitalize on the potential for future growth. Let's dive into two of the "Magnificent Seven" stocks that present compelling buying opportunities: Alphabet and Block.

Alphabet: A Strategic Buy

Alphabet, the parent company of Google, has long been a dominant player in the digital advertising and search engine markets. Despite a year-to-date decline of 15% as of March 23, 2025, Alphabet is trading at a significant discount to its peers, making it an attractive buy. The company's strategic acquisition of Wiz, a cloud security startup, for $33 billion is a testament to its commitment to enhancing its cloud security capabilities. This acquisition addresses a major national security issue and positions Alphabet as a leader in the cloud security space.

Eva Ados, ERShares COO and chief investment strategist, recommends buying Alphabet, stating, "It's a buy. I like Google. I think it's here to stay. Google is not going anywhere, they have a huge moat. I like the fact that they're down 20% in the last month... Google is now priced at half the price of their peers, so what's not to like here?" This expert opinion, coupled with Alphabet's strong market position and strategic initiatives, makes it a compelling buy on the dip.

Block: A Fintech Opportunity

Block, formerly known as Square, has seen its stock price plummet roughly 30% this year. However, this decline presents an attractive buying opportunity for investors. Block's acquisition of buy-now-pay-later firm AfterPay in 2022 positions it well for future growth, especially in the fintech space. Ados expects Block to get a bump from competitor fintech companies, which could act as a major catalyst for the fintech space and the buy-now-pay-later category.

Ados recommends buying the dip in Block, stating, "It's a buy ... the company is down 80% since their Covid highs. It's attractively priced, we believe." This expert opinion, along with Block's strong financial performance and growth potential, makes it a compelling buy on the dip.

Tesla: A Laggard in the Magnificent Seven

While Alphabet and Block present compelling buying opportunities, Tesla has been a laggard in the Magnificent Seven group. Tesla saw earnings fall 40% from fourth-quarter 2022 to 71 cents per share in the fourth quarter of 2023. This earnings decline could impact Tesla's long-term growth prospects, as investors may become more cautious about the company's ability to maintain its market leadership in the electric vehicle sector.



Conclusion

In conclusion, while the recent market dips and economic uncertainties pose challenges to the long-term growth prospects of the "Magnificent Seven" stocks, companies like Alphabet and Block, with strong fundamentals and strategic initiatives, are better positioned to weather these challenges. Tesla, on the other hand, may face more significant hurdles due to its recent earnings decline. Investors looking to buy the dip should consider Alphabet and Block as compelling opportunities for future growth.