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.
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) rallied 2.8% Thursday, set to close above its 50-day line for the first time since Aug. 28.
In recent weeks, 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.
Magnificent Seven Stocks: Amazon Regains Key Level
Amazon.com (AMZN) is back above its 50-day line following this week's gains. Shares climbed another 1% Thursday.
In late July, 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 itsAmazon Bedrockplatform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies likeAI21 Labs,Anthropic,Cohere,MetaandStability AI.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Tesla Stock Above Key Level
Tesla (TSLA) rose 0.3% Thursday, set to extend a win streak to four sessions. Shares of the electric-vehicle giant are back above their 50-day line.
On July 23, Tesla announced mixed second-quarter earnings and revenue. Earnings plummeted by more than 40% while sales came in above expectations.
Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Two Dow Jones names are among the Magnificent Seven: Apple (AAPL) and Microsoft (MSFT).
Apple stock gained 0.1% Thursday, still below at its 50-day line and building a base that has a buy point at 232.92.
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 up 0.7% in Thursday's trading, testing resistance at their 50-day line.
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Meta Stock Rebounds
Shares of Meta Platforms (META) are rebounding from support around their 50-day line, as they rose 2.6% Thursday.
On July 31, Meta reported strong second quarter earnings. Meta posted better-than-expected growth for the Facebook parent company's advertising business, buying more time for Chief Executive Mark Zuckerberg's expensive AI vision.
Meta stock shows a 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Alphabet Bounces
Alphabet (GOOGL) broke down below its 200-day line last week. Shares bounced another 2.1% Thursday.
On July 23, Google parent Alphabet reported second-quarter earnings and revenue that topped analyst estimates as operating margins improved. Management also signaled higher expenses in the September quarter, curtailing margin growth.
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