Members of Congress Are Buying This Beaten-Down "Magnificent Seven" Stock (Hint: It's Not Nvidia or Tesla)

The U.S. Congress might not be the place you want to look for guidance on anything financial-related. After all, the national debt is over $36.7 trillion and growing, and every penny of the money spent by the federal government had to be approved by Congress.

On the other hand, quite a few individual congressional representatives and senators have made some excellent stock picks through the years. Following their trades has become a pastime for some investors looking for stocks to buy. It doesn't make sense to mimic anyone's stock trades without thought, but Congress can be a place to find stocks worth checking out.

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While the so-called "Magnificent Seven" stocks aren't very magnificent in 2025 so far, several members of the group remain popular on Capitol Hill. Members of Congress are especially buying one beaten-down Magnificent Seven stock.

The favored "Magnificent Seven" stock

Nvidia and Tesla have taken the worst shellacking among the Magnificent Seven stocks this year. Nvidia's shares are down more than 30% from the peak set earlier in 2025, while Tesla's shares have plunged more than 40%.

So, do these two rank among the favorite Magnificent Seven stocks of Congress right now? Nope. Representatives and senators have sold Nvidia and Tesla more often than they've bought the stocks over the last 90 days, according to data at capitoltrades.com. It's a similar story for Apple, Google parent Alphabet, and Microsoft.

Members of Congress have bought shares of Meta Platforms (NASDAQ: META) more than they've sold the stock. However, their favorite Magnificent Seven stock based on net buying versus selling these days is Amazon (NASDAQ: AMZN).

The stock of the e-commerce and cloud services giant has enjoyed bipartisan support on Capitol Hill. Democratic representatives Dwight Evans of Pennsylvania and Ro Khanna of California have bought Amazon stock over the last 90 days (including four separate purchases for Khanna). Four GOP House members -- Marjorie Taylor Greene of Georgia, Scott Franklin of Florida, David Taylor of Ohio, and Thomas Kean Jr. of New Jersey -- picked up shares of Amazon. So have two Republican senators, John Boozman of Arkansas and Markwayne Mullin of Oklahoma.

Amazon's appeal

Federal regulations require members of Congress to disclose their stock trades, but not the reason behind them. We don't know why any of these people bought Amazon stock. However, we can make a pretty good guess as to why Amazon has been so appealing to multiple representatives and senators. It likely appeals to them for the same reasons it appeals to all kinds of investors.

Amazon's business remains rock-solid. The company raked in revenue of $638 billion last year. Its profits totaled $59.2 billion, a greater amount than the market caps of over two-thirds of stocks in the S&P 500.

Growth isn't a problem for Amazon, either. The rising demand for artificial intelligence (AI) continues to provide a seemingly unstoppable tailwind for its cloud division, Amazon Web Services (AWS). The Amazon Prime membership program has proven to be a cash cow that attracts consumers to the company's e-commerce platform.

One knock against Amazon stock in the past has been its sky-high valuation. That's not nearly as much of an issue now, though, with the stock's price-to-earnings-to-growth (PEG) ratio at 1.3.

Granted, President Donald Trump's tariffs could take a toll on Amazon over the near term. The good news on that front, however, is that cost-conscious consumers should still purchase heavily from Amazon. The company recently launched Amazon Haul, which offers ultra-low prices.

Should you buy Amazon stock,too?

Don't buy any stock solely because a politician bought it. For that matter, don't sell a stock just because a politician sold it. However, I think the Democrats and Republicans who bought Amazon in recent weeks made smart moves, if they hold onto their shares.

The current pullback presents a tremendous opportunity for long-term investors to buy Amazon at a discount. I expect AWS to continue to deliver strong growth as AI adoption rises. I predict Amazon's efforts to improve operational efficiency will keep driving profits higher. And I think the company's expansion initiatives into healthcare, satellite internet, and other areas will pay off.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.