Alberto E. Rodriguez
Is the Magnificent 7, which includes Microsoft (NASDAQ:MSFT), Nvidia (NVDA), Amazon (AMZN), Google (GOOG)(GOOGL), Meta Platforms (META), Apple (AAPL) and Tesla (TSLA), running out of steam?
It doesn’t appear that way. The market as a whole was down Tuesday in every sector but Energy. However, every Magnificent 7 stock besides Tesla had slipped no further than 1% by afternoon trading. Meta was slightly up.
The Roundhill Magnificent Seven ETF (MAGS) has increased more than 55% since last April. They continue to pummel the broader U.S. equity markets. For example, the S&P 500 and the NASDAQ 100, have grown by 27% and 38%, respectively, over the same time frame.
Maybe it could be renamed to the Fab Five, as Apple, and especially Tesla, have failed to gain traction in 2024. Apple is down 12.2% year to date while Tesla has plummeted 33% since the New Year.
The market remains optimistic on the rest.
For example, Meta has climbed nearly 40% year to date. Wells Fargo recently raised its price target on Meta to $609 from $536. Facebook has seen a lot of success with its Reels, which account for one-third of viewing time on the social media app. It also stands to gain the most if TikTok becomes banned in the U.S.
Amazon is up 19% year to date. AWS is the clear leader in the lucrative cloud service provider market, with just over 50%, according to HG Insights, followed by Microsoft’s Azure and Google Cloud Platform.
Microsoft has added more than 12% year to date. Its investment in OpenAI appears to be paying off and the stock continues to be considered a Strong Buy by Wall Street analysts.
Nvidia could be its own planet. Its stock value has rocketed 81% year to date. AI server demand is expected to grow by more than 40% this year in Asia alone, according to data by Oppenheimer. Nvidia is well positioned to make the most of the growing AI market.