2 Unstoppable "Magnificent Seven" Growth Stocks to Buy Even if There's a Stock Market Sell-Off in 2026

If you think the stock market could fall in 2026, it might seem counterintuitive to load up on growth stocks. Investors tend to gravitate toward income and value stocks during times of uncertainty because these companies are priced more for their existing earnings than their potential earnings.

But if you are a long-term investor who plans to hold stocks for three years, five years, or even decades, then market sell-offs can present impeccable buying opportunities despite the pain of volatility. The key is to find companies with the fundamentals needed to endure downturns. And a good place to start is with industry leaders like the "Magnificent Seven," which are the seven largest tech-focused S&P 500 companies by market cap.

Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) are two Magnificent Seven names that could pull back amid a broader market sell-off, especially if it's tied to artificial intelligence (AI). But looking out over the long term, these companies stand out as solid buys even in today's premium-priced market.

Here's why you can rest easy with these stocks, no matter what the market brings in 2026 -- along with key takeaways from their recent earnings reports.

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Meta's advertising revenue is overpowering AI spending concerns

Meta Platforms delivered blowout fourth-quarter and full-year 2025 results on Jan. 28.

As expected, costs and expenses soared 40%, outpacing 24% revenue growth as Meta ramps up capital expenditures (capex) on its AI investments -- building its own data centers, improving its search algorithms to drive curated advertising and user content, expanding its large language model to power Meta AI assistant, and more.

Meta continues to lose billions on its Reality Labs division, which is responsible for research and development and for augmented and virtual reality products like Ray-Ban Meta glasses and Meta Quest headsets. Reality Labs aims to connect the physical and digital worlds by expanding the metaverse, but the strategy has been far from profitable, with Reality Labs generating just $2.2 billion in revenue compared to $19.19 billion in operating losses in 2025.

Wall Street tolerates Reality Labs' abysmal performance because Meta's Family of Apps (Instagram, Facebook, Messenger, and WhatsApp) raked in a record $102.5 billion in operating income in 2025. To put that number into context, consider that the Family of Apps' operating income increased by $15.4 billion in 2025 -- or 17.6% year over year. A single year of Family of Apps growth was nearly large enough to offset a full year of Reality Labs losses.

Meta's fourth-quarter earnings release provided investors with a sigh of relief by stating that 2026 Reality Labs operating losses will be similar to 2025 levels. That would end their yearly streak of higher year-over-year losses and build on news from last December that Meta was pulling back on metaverse spending. Instead, Meta is pivoting its efforts toward Meta Superintelligence Labs, which builds upon its artificial intelligence models to create AI systems and products for consumers.

If Meta Platforms is going to bet on moon shots, investors probably prefer Meta Superintelligence Labs over Reality Labs. And with the Family of Apps continuing to gush free cash flow, the stock remains a phenomenal buy at just 22.5 times forward earnings.

Microsoft's AI spending is under control

During the earlier innings of the AI boom in 2023 and 2024, investors were quick to cheer increases in spending for it. But as themes mature, the euphoria fades, and investors want to see tangible results from higher spending.

This dynamic was on display on Jan. 28, when Meta Platforms surged as much as 11.2% in after-hours trading even though it is spending gobs of capital on AI. Whereas Microsoft fell as much as 10% since reporting earnings, largely due to AI spending concerns.

The technology is already benefiting Meta's Family of Apps with content-creation tools and by aligning user interests with relevant advertisers. And its Family of Apps stands to benefit from Meta's bold bets on personal superintelligence.

In contrast, Microsoft is betting big on AI by building out its data center infrastructure with Nvidia and Advanced Micro Devices chips, as well as its in-house-designed AI chip, the Maia 200 accelerator.

Second-quarter fiscal 2026 capex was $37.5 billion -- a 65.9% increase from the same quarter a year ago. By comparison, Microsoft's revenue was up 17%, and operating income increased 21%. These are great results, but whenever a company's spending drastically exceeds sales and earnings, investors naturally become skeptical.

The company is such a high-margin cash cow that it can afford to take risks. Even with higher spending, Microsoft still exited its latest quarter with $89.55 billion in cash, cash equivalents, and short-term investments, compared to $35.4 billion in long-term debt.

Its stock buybacks and dividends rose 32% compared to second-quarter fiscal 2025. So Microsoft is nowhere near the point where it would have to pause buybacks or slow its dividend growth. In fact, the company pays by far the most dividends of any S&P 500 company.

All told, Microsoft's sell-off is a buying opportunity because the company can afford some delayed gratification when it comes to AI spending. However, its backlog heavily depends on OpenAI, so investors should continue to monitor management's ability to convert orders into real results, especially if OpenAI goes public later this year.

Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.