The “Magnificent Seven” — Apple, Microsoft, Google-parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla — lived up to their name with big gains in 2023. But returns were more dispersed in the third quarter of 2024, and the group as a whole saw sell-off in recent weeks before rebounding.
↑
X
Nasdaq falls after strong start, focus on JP Morgan, Alamos Gold, ARGX
Due to their outsized market capitalizations, the Magnificent Seven’s stocks have a disproportionate influence on the market-cap-weighted Nasdaq Composite and S&P 500 indexes.
For more on this issue, see IBD’s “Magnificent Seven” page on weightings, market caps, and the latest news for each company.
7 stocks with impressive performances
Company 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 August 12th
Nvidia shares plummet
Nvidia (NVDA) plunged 4.6% on Friday, sliding further below its 50-day line and approaching its early-August lows.
In recent weeks, Nvidia has beat Wall Street targets for its second-quarter results and provided better-than-expected guidance for the current period.
The Santa Clara, California-based company reported adjusted earnings of 68 cents a share on revenue of $30.04 billion for the quarter ended July 28. Analysts surveyed by FactSet had expected revenue of $28.74 billion and earnings of 65 cents a share. Year-over-year, Nvidia’s profit rose 152% and revenue increased 122%.
Nvidia shares have been doing well this year, soaring after the AI giant beat Wall Street targets for its first-quarter results and outlook for the current quarter. The company also announced a 10-for-1 stock split that took effect on June 10.
This tech giant is an IBD Leaderboard stock.
Magnificent Seven Stocks: Amazon Tests Key Levels
Amazon.com (AMZN) is trying to find support near its long-term 200-day moving average after shares fell 3% on Friday. In recent trading, the stock has tested its 50-day moving average, a key resistance level.
In recent weeks, the e-commerce giant has reported mixed results for the second quarter.
Profit beat expectations, but revenue fell short of estimates, despite a stronger-than-expected contribution from Amazon’s cloud-computing division. The tech giant’s revenue forecast also fell short of expectations.
Through its Amazon Bedrock platform, the e-commerce and cloud giant offers a fully managed service that provides a choice of high-performance foundational models (FMs) from leading AI companies such as AI21 Labs, Anthropic, Cohere, Meta, and Stability AI.
Be sure to read how to use IBD’s new exposure levels to adapt to changing market conditions.
Dow Jones stocks: 7 surprise winners: Apple, Microsoft
Two Dow Jones stocks are in the Magnificent Seven: Apple (AAPL) and Microsoft (MSFT).
Apple shares fell 0.8% on Friday, holding onto their 50-day moving average and building the foundation for a buy point at 237.23.
In recent weeks, Apple has reported better-than-expected third-quarter results thanks to record services revenue and strong iPad sales.
Software giant Microsoft on July 30 reported fourth-quarter earnings that slightly beat Wall Street targets, but Azure cloud computing growth disappoints, and the company also gave a weak revenue outlook for the current quarter.
The stock fell 1.5% in trading on Friday, dropping below support near its 200-day line.
IBD Live: A new tool for daily stock market analysis
