Retail investors are increasingly buying shares of SpaceX, signaling a broader shift away from the Magnificent Seven stocks that dominated portfolios for years. The move comes as a new grouping — the FAB 10 — gains traction among traders looking for exposure to frontier technology.
Why the Magnificent Seven lost their luster
The Magnificent Seven — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla — have been the darlings of the market since late 2022. But the facts show their appeal is fading among retail investors. No single event triggered the change; rather, a growing sense that the biggest tech names have peaked in momentum is driving money elsewhere.
Investors are still buying stocks, just not the same ones. The rotation suggests a belief that future returns lie outside the megacap club.
SpaceX attracts a new wave of buyers
SpaceX isn't publicly traded, but retail investors are finding ways to buy shares through secondary markets and special-purpose vehicles. The company's regular rocket launches and ambitious Starship program make it a pure play on space exploration — a sector that excites the same demographic that once piled into Tesla.
With SpaceX still private, these purchases come with higher risk and less liquidity. But the interest is real. The facts indicate that retail demand for the company's stock has been climbing steadily.
What is the FAB 10?
While the Magnificent Seven shrinks in investor imagination, a new acronym is emerging: the FAB 10. The facts don't name the companies in this group, but they describe it as a collection of frontier-technology firms. Likely candidates include names in artificial intelligence, clean energy, biotech and space — sectors where growth is still accelerating.
The shift from seven to ten stocks suggests a broadening of the market's focus. Instead of betting on a handful of established giants, retail investors are spreading capital across a wider set of early-stage innovators.
How this could reshape market dynamics
If retail money keeps flowing into SpaceX and the FAB 10, the ripple effects could be significant. The Magnificent Seven have propped up the S&P 500 for two years. A sustained rotation would mean lower relative performance for those stocks and higher volatility in previously quieter corners of the market.
For now, the trend is clear: individual investors are chasing frontier technology. Whether that bet pays off — and whether the FAB 10 becomes the new benchmark — depends on how many of these companies deliver on their promises.
