Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Tuesday, July 8, 2025

Most Magnificent 7 AI Stocks Could Be Valued Using Dividend Discount Model

 


Apple, Alphabet, Microsoft, Meta, NVIDIA from the Magnificent 7 distribute regulat dividends, while their dividend yield being relatively low from 0.7 % downward.

The rest 2 of the Magnificent 7, namely Tesla and Amazon have never distributed dividends.

Technology stocks, also the hyperscalers  Apple, Alphabet, Microsoft, Meta have been notoriously difficult to value because they were either unprofitable for long periods of time as public companies or do not distribute dividends. So some sort of multiples methods valuation was used by Wall Street research analysts to value Apple, Alphabet, Microsoft, Meta, NVIDIA, Tesla and NVIDIA, the Magnificent 7.

But now as Apple, Alphabet, Microsoft, Meta, NVIDIA distribute regular dividends, the dividend discount model could be utilized by Wall Street equity research analysts.

The Dividend Discount Model gives an unique view on the company be it being heavily reliant on the equity analysts' assumptions.

But Dividend Discount Model gives a good basis to value Apple, Alphabet, Microsoft, Meta, NVIDIA, according to Wolfteam Ltd.'s projections and estimates.

 

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