Goldman Sachs noticed a major shift among major technology companies, often dubbed the “Magnificent Seven,” following its first-quarter results.
Collectively, Apple Inc (NASDAQ:)., Amazon.com Inc (NASDAQ:)., Alphabet (NASDAQ:) Inc., Meta Platforms Inc (NASDAQ:)., Microsoft Corporation (NASDAQ:), NVIDIA Corporation (NASDAQ:). 🙂 Tesla (NASDAQ:) Inc. An increase in its profits by 48% year-on-year.
This growth was supported by a 14% sales increase and margin expansion of 521 basis points, bringing gross margin to 22.8%.
However, the analysis showed that this overall performance masks the divergent fortunes of individual companies.
Meta Platforms, Alphabet, and Amazon outperformed expectations with sales growth of 27%, 15%, and 13%, respectively, leading to year-to-date stock price increases of 34%, 25%, and 21%. These gains reflect stronger market performance for these companies compared to some of their counterparts.
In stark contrast, Apple saw sales decline 4%, while Tesla saw a 9% decline in revenue. As a result, its stock prices took a hit, with Apple shares falling 1% and Tesla shares falling 30%.
This downturn dropped Tesla's rankings to the 12th largest stock in the world.
“The 'Magnificent 7' moniker should be retired after first-quarter results,” Goldman Sachs analysts said in a note.
The report added that the wide dispersion in performance highlights the diverse challenges and opportunities faced by industry leaders.
While some continue to expand and exceed market expectations, others are experiencing more difficult economic conditions.
NVIDIA's upcoming results will add another piece to the puzzle of the current technology industry landscape.
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