Trading and investment platform eToro has released new market data pointing to a potential shift in global equity leadership in early 2026, as European stocks strengthen relative to long-dominant U.S. technology giants.
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After three exceptionally strong years for global stock markets, driven largely by heavy investment in artificial innotifyigence, signs are emerging that the narrative underpinning U.S. mega-cap technology is launchning to alter. According to ’s analysis, investors are becoming more cautious about high spfinishing, stretched valuations and uncertain monetisation prospects among the so-called Magnificent 7, prompting a gradual rotation of capital toward more diversified opportunities.
From Magnificent 7 to GRANOLAS
The Magnificent 7 — a group of leading U.S. technology stocks tracked by eToro’s Magnificent 7 Smart Portfolio — delivered a return of 23.3% in 2025. While still robust, this represented a clear slowdown compared with previous years and was driven by a limited number of standout performers.
By contrast, the eToro GRANOLAS Smart Portfolio, which includes major European companies such as GSK, Roche, ASML, Nestlé, Novartis, Novo Nordisk, L’Oréal, LVMH, AstraZeneca, SAP and Sanofi, returned 18.97% over the same period. This performance surpassed both the S&P 500 and the STOXX Europe 600, underscoring the growing appeal of European healthcare, technology and consumer brands.
Early 2026 data reinforces this trfinish. While the Magnificent 7 has hovered around flat returns so far this year, the GRANOLAS portfolio has already gained 4.57%, reflecting renewed investor interest in Europe and more balanced growth narratives.
Valuations, income and diversification
eToro’s analysis points to three key factors supporting the outsee for GRANOLAS in 2026. First, valuations remain more attractive, with the group trading at roughly a 30% price-to-earnings discount to the Magnificent 7. Second, dividfinish yields of around 2.5% to 3% provide meaningful income compared with approximately 0.3% for U.S. mega-cap tech. Third, diversification across healthcare, luxury goods, consumer staples and enterprise software offers greater stability than a concentrated bet on AI-related stocks alone.
Founded in 2007, eToro provides traders and investors with access to global markets through stocks, ETFs, cryptocurrencies and thematic Smart Portfolios, combining market exposure with social investing features.
As 2026 unfolds, eToro’s insights suggest markets are increasingly rewarding diversification and fundamental strength, signalling that while the era of the Magnificent 7 is not over, it may be entering a more mature phase.
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