The shares of the “Magnificent 7” have not had an easy time of it recently, but investors should not throw in the towel after a volatile August for the markets.

Given the more difficult market conditions, you should be careful in your selection, said Bill Blain, founder of Wind Shift Capital.

Blain – longtime writer of the Morning Porridge newsletter – named Meta (META) the best Mag 7 game of the day.

“The advertising business is huge,” Blain told Yahoo Finance executive Brian Sozzi on his Opening Bid podcast (watch the video above or listen here). “About 75% of advertising is on the internet, and the company that controls that best right now is (Meta).”

Meta’s second-quarter results last week underscore Blain’s optimistic view.

Profit and sales significantly exceeded analysts’ estimates. Profit rose by 73% compared to the previous year.

The app family (Instagram, Facebook, WhatsApp) also exceeded expectations with revenue of $38.72 billion. Revenue for the app family increased by about $7 billion year-on-year.

According to Yahoo Finance, Meta shares have risen 7.5 percent since the company released its earnings report on August 1. However, shares are still down 4 percent over the past month as sentiment toward the Mag 7 has worsened.

The “Magnificent Seven” include Apple (AAPL), Tesla (TSLA), Alphabet (GOOG, GOOGL), Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA) and Meta.

Unlike Meta, the other six names have struggled with various negative news in recent weeks, putting pressure on their share price.

Nvidia is reportedly delaying the delivery of its new Blackwell AI chips by a quarter. Tesla had a disastrous second quarter. Alphabet preached that AI adoption needs more time, and market leader Microsoft’s AI results fell short of expectations. Amazon warned of a decline in consumer spending in the second quarter.

Since the release of Meta’s earnings report, all stocks except the Meta Mag 7 have been in the red, led by a 13% decline in Tesla.

And then there is Apple.

Blain, who had previously been optimistic about Apple, recently changed his perspective.

“When Warren Buffett turned around and dumped the stocks, I thought he must know something I don’t know,” Blain said.

Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) reportedly reduced its stake in the tech giant by as much as 50%. Buffett’s motive is unclear, but it was a negative signal to an increasingly nervous market.

Three times a week, Yahoo Finance Executive Editor Brian Sozzi hosts insightful conversations and chats with the biggest names in business and markets Opening bidYou can find further episodes on our Video Hub. See on your preferred streaming service. Or listen and subscribe on Apple Podcasts, Spotifyor wherever you find your favorite podcasts.

In the following episode “Opening Bid,” Mike Wilson, Chief US Equity Strategist and CIO of Morgan Stanley, reveals why technology stocks still appear overvalued.

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