The "Magnificent Seven" stocks dominated in 2023 -- all outperforming the S 500 by a wide margin. The term was coined by Bank of America analyst Michael Hartnett to describe seven large tech-focused companies: Apple (NASDAQ: AAPL), (NASDAQ: MSFT), Amazon, Alphabet, Meta Platforms, Nvidia, and Tesla (NASDAQ: TSLA).

Each company has its own pros and cons. But one thing is certain among them all. They've all gotten a lot more expensive after this year's run-up, so it's time to be selective in 2024. Valuations matter, and there's only so much an investor should pay for a company's future earnings.

With that in mind, here's why Tesla, Apple, and Microsoft are the only three Magnificent Seven stocks I would consider buying next year.

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Source Fool.com