Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the third quarter of 2024 showed their returns diverging and the whole group came under selling in recent weeks before rebounding.
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Due to their outsized market capitalizations, Magnificent Seven stocks hold a disproportionate influence on the market-cap weighted Nasdaq composite and S&P 500 indexes.
For an in-depth look at this issue, check out IBD’s page on the Magnificent Seven weightings, market capitalizations and the companies’ latest news stories.
| Company Name | Symbol | 2024 YTD Performance |
|---|---|---|
| Alphabet | (GOOGL) | +17.2% |
| Amazon | (AMZN) | +9.9% |
| Apple | (AAPL) | +12.3% |
| Meta Platforms | (META) | +46.3% |
| Microsoft | (MSFT) | +8.0% |
| Nvidia | (NVDA) | +111.5% |
| Tesla | (TSLA) | -19.5% |
Nvidia (NVDA) plunged 9.5% Tuesday, breaking down below the 50-day line, a key level to watch. Shares are forming a base that has a 140.76 buy point.
Last week, Nvidia beat Wall Street’s targets for its fiscal second quarter and guided higher than views for the current period.
The Santa Clara, Calif.-based company earned an adjusted 68 cents a share on sales of $30.04 billion in the quarter ended July 28. Analysts polled by FactSet had expected earnings of 65 cents a share on sales of $28.74 billion. On a year-over-year basis, Nvidia earnings soared 152% while sales jumped 122%.
Nvidia stock is having a strong year, and soared after the AI giant beat Wall Street’s targets for its fiscal first quarter and guided higher than views for the current period. It also announced a 10-for-1 stock split that took effect on June 10.
The tech titan is an IBD Leaderboard stock.
Amazon.com (AMZN) is trying to find support around its long-term 200-day line, as shares dropped 1.3% Tuesday. In recent sessions, shares tested their 50-day line, a key resistance level.
In recent weeks, the e-commerce giant reported mixed second quarter results.
Earnings beat expectations but revenue came in short of projections, despite a stronger-than-expected contribution from Amazon’s cloud computing division. The tech giant’s sales forecast was also lower than expected.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Two Dow Jones names are among the Magnificent Seven: Apple (AAPL) and Microsoft (MSFT).
Apple stock slipped 3% Tuesday, holding above its 50-day line and building a base that has a buy point at 237.23.
In recent weeks, Apple beat expectations for its fiscal third quarter thanks to record services revenue and strong iPad sales.
On July 30, software giant Microsoft reported fiscal fourth-quarter results that edged above Wall Street’s targets. But Azure cloud-computing growth disappointed. Also, Microsoft’s sales guidance for the current quarter was light.
Shares moved down 2% in Tuesday’s trading, trying to find support around the 200-day line.
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