Key Takeaways
- A 10-K filing contains much more than financial statements—investors can glean insights on risk, strategy, and leadership priorities.
- The Magnificent Seven’s filings are case studies in how leading firms frame their futures to investors.
- The 10-K filing sections titled “Risk Factors” and “Management’s Discussion and Analysis (MD&A)” often contain the most forward-looking, nuanced information.
- Comparing filings over time can reveal how a company’s priorities or tone have shifted.
- Supplemental filings like 8-Ks and proxy statements (DEF 14A) can clarify management decisions and shareholder matters.
Alphabet (GOOGL; GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) are the powerhouses behind the Magnificent Seven—companies that have dominated headlines and driven disproportionate U.S. market returns in recent years. Due to the size, influence, and complexity of these mega-cap companies, understanding how they operate requires more than just reading headlines and earnings summaries.
Some of the most powerful and publicly available tools for peeking behind the curtain are each company’s filings with the U.S. Securities and Exchange Commission (SEC). Chief among these filings is the annual Form 10-K, a mandatory report of the company’s business model, financial performance, risks, and strategies.
Within the 10-K, sections such as Management’s Discussion and Analysis (MD&A) are key to understanding the management’s future priorities and past results.
Note
Other SEC filings, such as Form 8-K and DEF 14A, provide investors with insight into major corporate events and executive decisions that may affect the bottom line.
Why the 10-K Matters (and How To Read It)
A 10-K is an annual report required to be filed with the SEC. Unlike the glossy letters sent to shareholders each year, SEC filings carry legal liabilities that provide an honest look at the company’s past performance and future outlook, including both its strengths and weaknesses
Depending on the size and complexity of the filing company, the 10-K may be hundreds of pages. Investors don’t have to read it cover to cover, but some sections give essential insights:
Business Overview (Item 1): This section outlines a company’s operations and competitive positioning, including its products and services.
Risk Factors (Item 1A): Investors will find management’s view of the biggest threats to their business listed in order of importance in this section.
Management’s Discussion and Analysis (MD&A, Item 7): In this section, management has the opportunity to explain its business results from the previous fiscal year. The MD&A also addresses trends and strategy for the next year.
Financial Statements (Item 8): The financial statements of all companies are audited, and the numbers in Item 8 support the narrative presented in the other sections, providing investors with a comprehensive picture.
Business Models and Market Positioning
The annual 10-K filings don’t just give investors insights into a company’s finances, but also reveal how companies describe their business segments and revenue models, and how they justify major investments to maintain their competitive edge.
- While Apple has a number of iconic consumer devices, its 10-K emphasizes the Apple ecosystem, in which hardware, software, and services work together.
- Microsoft, clearly recognizing the importance of cloud and AI platform technological advancements, recently shifted its focus to these products in its filings, even though its legacy software still generates impressive revenue.
- Alphabet and Meta filings both stress their long-term investments in AI, but focus a majority of their business and revenue models on advertising-driven platforms.
- Amazon is well-known for its Goliath retail and logistics model, but Amazon’s 10-K filings also highlight the company’s focus on advertising revenues alongside its cloud computing business.
- Nvidia’s filings underscore its foundational position as an AI infrastructure provider and a crucial semiconductor manufacturer.
- Meanwhile, Tesla continues to describe itself as an innovator of automotive and energy technology.
For investors, the takeaway from reading the 10-K is how a company prioritizes its business ventures and where management believes its value lies.
Risks the Magnificent 7 Are Flagging
Item 1A or the Risk Factors section of a 10-K is one of the most revealing parts of a company’s annual SEC filings, but it is also frequently one of the most ignored.
Across the Magnificent Seven 10-K filings, several themes reappear in their Risk Factors sections. Firms with advertising-driven platforms such as Meta and Alphabet flag regulatory and antitrust scrutiny as a major risk to their current business models.
As many companies shift towards AI integrations as an increasingly large part of their business model, the Mag 7’s Risk Factors sections reflect concerns about regulatory uncertainty, model reliability, misuse, and availability.
Supply chain concentration and labor shortages are other key concerns for many of the Magnificent Seven companies.
Especially in the 2025 fiscal year, many Mag 7 companies flagged geopolitical exposures, such as trade restrictions and international operations, as major risks to continued business profitability and sustainability.
Investors should consider not just the risks listed, but also how they’re discussed. Aggressive expansion into the AI arena tends to be reflected in Item 1A, with detailed disclosures regarding data usage, intellectual property, and regulatory oversight. Firms concentrated in manufacturing or reliant on supply chains often include language about supplier concerns and geopolitical instability.
Tip
Companies formally reassess risk factors annually in their 10-Ks, update them quarterly in 10-Qs if material changes occur, and may disclose new risks in real time through 8-Ks following significant events. Comparing risk factors across filings can reveal concerns before they show up in earnings.
Inside the MD&A: Signals From Management
The risk section of a 10-K filing reveals what company management is concerned about, while the Management’s Discussion and Analysis (MD&A) section shows investors what management believes is going well. Recent MD&A sections of the Magnificent Seven’s filings emphasize several common themes.
The MD&A sections of Alphabet, Amazon, Meta, Microsoft, and Nvidia show rising capital expenditures (CapEx) in AI, cloud computing, and scaling those ventures, even when it may hurt the bottom line in the near term.
Companies like Alphabet, Amazon, Meta, and Tesla reveal shifts in cost structure. Alphabet, Amazon, and Meta are focusing on efficiency as they anticipate future technology expenses and following restructuring efforts. Tesla, facing geopolitical uncertainty, is focused on improving production efficiency to support future profitability.
Nearly all Magnificent Seven companies are increasingly focused on changes to their revenue mix. Meta, Alphabet, and Amazon are optimistic about higher-margin advertising revenue, while Apple and Microsoft are shifting toward recurring service revenue alongside their flagship hardware and software sales to stabilize income and valuation.
The MD&A sections of 10-Ks also give investors insight into what management values and where they are investing. How companies allocate capital—such as Alphabet’s increased AI spending—signals confidence in long-term growth. These sections also reveal financial discipline and strategy, and should be read in conjunction with the financial statements to gain a comprehensive understanding.
ESG and Governance Clues in Proxy and Supplemental Filings
The 10-K is a foundational document, but proxy statements (Form DEF 14A) and current reports (Form 8-K) are equally important supporting documents that can provide critical context for investors. DEF 14A provides shareholders, in particular, with insights into leadership compensation, board composition, interdependence, and shareholder proposals. The Mag 7 proxy statements frequently highlight debates around pay structures, AI oversight, and shareholder influence.
Form 8-Ks, filed on an as-needed basis, disclose events in real time, such as executive departures, new acquisitions, legal developments, or other major strategic shifts. While each statement and filing tells its own story, taken together, these documents give investors a large-scale picture of how corporate decisions are made and communicated.
What’s Changed Since Last Year?
One of the most efficient ways to use SEC filings is actually through comparison. The Magnificent Seven’s recent filings show expanded AI-related disclosures and risk language. These filings put a greater emphasis on regulatory compliance and oversight.
Perhaps most notably, the Mag 7 companies shifted their tones on growth expectations and capital spending amid new risks that affect them all, as well as growing existing risks such as geopolitical uncertainty. Year-over-year changes can be just as informative to investors as headline financial results.
What Are the Magnificent 7 Companies?
The Magnificent Seven refers to a group of seven large U.S. technology-focused companies that have driven a significant share of recent stock market gains due to their size, global reach, and influence across their consumer sectors. The group includes Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Tesla, and Meta Platforms.
Where Can I Find a Company’s 10-K Filing?
Investors can access any publicly traded company’s 10-K filing by visiting the SEC’s EDGAR database or in the investor relations section of a company’s website.
What Is an MD&A Section in a 10-K?
The MD&A section in a 10-K stands for Management Discussion and Analysis. In this section, management has the opportunity to explain recent expenditures, restructuring, investments, performances, trends, or plans from their point of view. It gives investors context for the data contained elsewhere in the filings.
The Bottom Line
The Magnificent Seven’s SEC filings show investors how 10-Ks and related filings, such as 8-Ks and proxy statements, provide critical insight into how companies think about growth, risk, and strategy. Investors who read these documents and understand their often subtle year-over-year changes can use this information as a powerful decision-making tool.
