The “Magnificent Seven” stocks, which include Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla, made notable gains in 2024. These stocks, known for their substantial market capitalizations, heavily influence the Nasdaq composite and S&P 500 indexes. Nvidia stock plunged more than 6% on Tuesday after briefly hitting record highs at the market open.
The stock has dipped below a double bottom’s 146.54 buy point following Monday’s breakout move. Shares continued to slide on Wednesday, falling 0.1% and risking support around their 50-day line. Amazon reclaimed its 201.20 buy point during recent gains but moved down 0.2% on Wednesday.
On October 31, the company reported adjusted earnings of $1.43 per share on sales of $158.9 billion for the September-ended quarter, surpassing analysts’ expectations slightly. Tesla’s stock skidded 4.1% on Tuesday, reversing part of Friday’s rebound. The EV giant reached an all-time high of 488.53 on December 18.
Tesla shares rose 0.3% on Wednesday. The company reported 495,570 fourth-quarter deliveries, missing the analyst estimate of 500,000. Apple stock edged down 0.1% on Wednesday, adding to Tuesday’s losses.
Influence of tech giants in 2024
Shares remain within buy range above a flat base’s 237.49 buy point. On October 31, Apple offered weak sales guidance for the December quarter, as the iPhone 16 upgrade cycle lagged due to delayed AI feature rollouts.
Microsoft topped Wall Street’s targets on October 30, driven by its strong cloud computing business. The company reported $3.30 per share on sales of $65.6 billion for the quarter ended September 30. Analysts had expected earnings of $3.10 per share on sales of $64.6 billion.
Meta Platforms fell 1.5% on Wednesday but remained above a flat base’s 602.95 buy point. On October 30, the company exceeded earnings expectations, driven by a 19% revenue increase. CEO Mark Zuckerberg reiterated commitments to significant investments in AI and the metaverse.
Alphabet shares dropped 1% on Wednesday but stayed above a cup-with-handle’s 182.49 buy point. Recently, the stock dipped below its 50-day line due to regulatory concerns over the potential breakup of Google’s search business. However, Alphabet reported strong Q3 earnings on October 29, with results boosted by AI-driven enhancements to its core advertising business.
The performance of these tech giants, collectively known as the “Magnificent Seven,” continues to shape market trends as they navigate earnings reports and broader technological advancements. Investors are watching closely to see if their rally can continue driving the overall market higher in 2025.
