7 Giant Stocks Have Reached Oversold Levels... A Rebound Is Now Expected

7 Giant Tech Stocks Hit Oversold Levels... A Rebound or Stabilization Expected

Economic analysis firm Alpine Macro has reported that the "Magnificent 7" tech stocks have reached short-term oversold conditions, suggesting that a rebound or stabilization could follow.

Last week, U.S. stocks recorded their highest gains since October 2023, recovering from the "Black Monday" selloff when the market faced heavy losses due to recession fears and concerns over weak liquidity. Some investors had believed stock prices had peaked.

The Magnificent 7 stocks, which make up 33% of the S&P 500 index, experienced a sharp decline, leading analysts to believe they are now oversold in the short term.

Alpine Macro’s latest analysis provides a detailed outlook on these stocks, using various indicators. The firm noted that technical indicators and capital allocation metrics suggest excessive selling pressure, hinting at a potential rebound or stabilization.

This is particularly significant given the massive market cap expansion and stock price surges over the past decade.

The investment research firm also highlighted strong fundamentals—such as sales, profit margins, and cash flows—that continue to support the Magnificent 7 stocks compared to the broader market.

However, concerns remain about valuation. While the recent decline has made these stocks appear less expensive, Alpine Macro warns they may still be "just expensive" rather than irrationally priced