'Magnificent Seven' market dominance 'not unique': Strategist
Tesla (TSLA), Microsoft (MSFT), Alphabet (GOOGL, GOOG), and Amazon (AMZN) -four of the "Magnificent Seven" - are gearing up to release their latest quarterly earnings this week. Much of Wall Street is eagerly awaiting these earnings, considering how much weight in the major indexes these stocks hold. Goldman Sachs Global Chief Equity Strategist Peter Oppenheimer joins Yahoo Finance to give insight into the upcoming week of Big Tech earnings and puts the market dominance from these companies in a historical context, extrapolating what can be learned from the past. Oppenheimer says Big Tech's dominance is "not unique historically. We've had the largest companies in the index of typically been somewhere between 5% and 20%. So if you went back to the 1960s, for example, the big car companies were as big in the index as the bigger technology companies are today." He continues with: "One of the things I would say is very positive is that there have been times, on occasion, in the past when the biggest companies have been very expensive and they've really reflected hopes and expectations of future profits rather than current strong results...It's not unique to have the concentration or the size and scale of companies that we're seeing currently, but the rather good thing, I think, is that these companies are actually achieving very, very strong profitability. " For more expert insight and the latest market action, click here to watch this full episode. This post was written by Nicholas Jacobino
