Magnificent 7 stocks have been all the hype in recent quarters, and for good reason. I think most of that hype is more than justified. The market is now mostly driven by AI and the data center boom, and most people in white-collar jobs can attest that AI has greatly improved their productivity.
That said, it is still important to be careful here. Certain Magnificent 7 stocks may have gotten ahead of themselves, making now a good time to trim your exposure. Now, I will make it clear that you should not short any of these stocks due to the momentum in this space, and you will certainly lose over the long-run. But I think it is smart to lock in some profits on some overvalued names.
As such, here is one Magnificent 7 stock to ditch and two to buy instead.
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