5/18/2026
By Charles Payne, CEO & Principal Analyst

Stupendous

It’s the same case for earnings, which have been great all around but amazingly great for Technology (XLK) and stupendous for “Mag Seven.”

“Mag Seven” earnings are significantly above the rest of the market.

Earnings Sustainability

Megacap names are all adopting the Alphabet (GOOG/L) approach, making huge investments and becoming de facto investment funds in addition to their core competencies. It's paying off big time, but the question is how sustainable this is and how much of current earnings should be extrapolated to project future results. Alphabet’s investments were marked $36.9 billion higher in the first quarter.

The answer is that this won’t be as beneficial forever, but for now, momentum is real and not pulling in forward 2027 earnings.

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Charles Payne
Wall Street Strategies