Here’s this strategist’s top 'Magnificent 7' stock to purchase after the rout

The “Magnificent Seven” stocks have not had it easy these days, but investors shouldn’t toss within the towel on them during a volatile August for markets.

Be precise with the picks without delay given tougher market conditions, said Wind Shift Capital founder Bill Blain.

Blain — the longtime creator of the Morning Porridge newsletter — tagged Meta (META) as the perfect Magnificent Seven play today.

“The business of promoting is huge,” Blain told Yahoo Finance executive Brian Sozzi on Yahoo Finance’s Opening Bid podcast (see video above or listen here). “About 75% of promoting goes through the web, and the firm that controls that best in the meanwhile is [Meta].”

Meta’s second quarter earnings last week underscore Blain’s bullish call.

Earnings and revenue easily beat analysts’ estimates. Profits were up 73% from a 12 months ago.

Its app family (Instagram, Facebook, and WhatsApp) also walloped expectations with revenues of $38.72 billion. Sales for the app family rose about $7 billion 12 months over 12 months.

Meta stock has rallied 7.5% for the reason that company’s Aug. 1 earnings report, in accordance with Yahoo Finance data. Shares are still off by 4% up to now month as sentiment has soured on the Magnificent Seven name.

The Magnificent Seven includes Apple (AAPL), Tesla (TSLA), Alphabet (GOOG, GOOGL), Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), and Meta.

Unlike Meta, the opposite six names have handled various negative news in recent weeks which have pressured their shares.

Nvidia is reportedly delaying the shipment of its recent Blackwell AI chips by 1 / 4. Tesla had a terrible second quarter. Alphabet preached of needing more time for AI adoption, while market leader Microsoft’s AI results didn’t live as much as expectations. Amazon warned of a slowing consumer in its second quarter.

All the non-Meta Magnificent Seven stocks are down since Meta’s earnings report, led by a 13% drop in Tesla stock.

Then there may be Apple.

Blain, who had been bullish on Apple, has recently shifted perspective.

“When Warren Buffett turned around and dumped the stock, I believed, he must know something I don’t,” said Blain.

Warren Buffett’s Berkshire Hathaway (BRK-A, BRK-B) reportedly slashed its stake within the tech giant by as much as 50%. It’s unclear as to Buffett’s motivation, however it sent a negative signal to an increasingly jittery market.

StockStory goals to assist individual investors beat the market.

3 times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the largest names in business and markets on Opening Bid. Find more episodes on our video hub. Watch in your preferred streaming service. Or listen and subscribe on Apple Podcasts, Spotify, or wherever you discover your favorite podcasts.