In 2023, the Magnificent Seven stocks – Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla – saw significant gains. However, their returns started diverging in the third quarter of 2024, leading to a period of selling before rebounding.
These stocks, due to their large market capitalizations, have a substantial impact on the market-cap weighted Nasdaq composite and S&P 500 indexes.
For a detailed analysis of this issue, visit IBD’s page on the Magnificent Seven stocks’ weightings, market capitalizations, and the latest news on these companies.
Magnificent Seven Stocks Performance
| 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% |
Source: IBD Data as of Aug. 12
Nvidia Stock Dives
Nvidia (NVDA) experienced a 9.5% decline on Tuesday, breaking below the 50-day line. The stock is currently forming a base with a 140.76 buy point.
Last week, Nvidia surpassed Wall Street’s expectations for its fiscal second quarter and provided an optimistic outlook for the current period.
In the quarter ended July 28, the Santa Clara-based company reported adjusted earnings of 68 cents per share on sales of $30.04 billion. Analysts had predicted earnings of 65 cents per share on sales of $28.74 billion. Nvidia’s earnings and sales saw a significant increase on a year-over-year basis.
Nvidia’s stock has been performing well, with a substantial rise following the company’s positive results for the fiscal first quarter and an announcement of a 10-for-1 stock split that took effect on June 10. It is also a part of the IBD Leaderboard stock.
Magnificent Seven Stocks: Amazon Tests Key Level
Amazon.com (AMZN) is currently testing support around its long-term 200-day line after a 1.4% drop on Tuesday. The stock recently approached its 50-day line, a crucial resistance level.
In recent weeks, the e-commerce giant released mixed second-quarter results.
While earnings exceeded expectations, revenue fell short, despite a strong performance from Amazon’s cloud computing segment. The company’s sales forecast was also lower than anticipated.
Through its Amazon Bedrock platform, the company offers a fully managed service with high-performing foundation models from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta, and Stability AI.
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Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Among the Magnificent Seven, two Dow Jones stocks are included: Apple (AAPL) and Microsoft (MSFT).
Apple’s stock saw a 2.6% decline on Tuesday but remains above its 50-day line, forming a base with a buy point at 237.23.
Recently, Apple surpassed expectations for its fiscal third quarter, driven by record services revenue and strong iPad sales.
On July 30, Microsoft reported fourth-quarter results that slightly exceeded Wall Street’s expectations. However, Azure cloud-computing growth was below par, and the company’s sales guidance for the current quarter was not very strong.
Microsoft’s stock dropped by 1.6% on Tuesday, attempting to find support around the 200-day line.
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