Cramer Says the Magnificent Seven Are Finally Cheap and Most Investors Will Miss It

On September 3, 2026, CNBC’s Jim Cramer argued that the “Magnificent Seven” are finally “cheap,” pointing to how the market has stopped crediting their heavy spending on AI infrastructure. He framed the issue as timing: massive capital expenditures can depress free cash flow now, while profits may arrive later—or, alternatively, the spending could be destroying value. He cited Meta, forecasting 2026 capex of $130–145 billion and free cash flow falling to $784 million from $8.55 billion a year earlier, and Amazon’s trailing free cash flow of negative $7.6 billion versus $53.1 billion in quarterly capex. Cramer highlighted Amazon and Alphabet as relatively cleaner bets, citing AWS growth of 37% year over year to $42.23 billion and Alphabet trading at a trailing P/E of 17x.