Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the start of 2024 has shown a big divergence of returns. The Magnificent Seven stocks are among the best stocks to buy and watch in the stock market today.
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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) | -3.8% |
| Amazon | (AMZN) | +16.4% |
| Apple | (AAPL) | -12.2% |
| Meta Platforms | (META) | +44.7% |
| Microsoft | (MSFT) | +8.8% |
| Nvidia | (NVDA) | +87.1% |
| Tesla | (TSLA) | -28.1% |
Source: IBD Data As Of March 7, 2024
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Alphabet Breaks Key Support
Google parent Alphabet (GOOGL) is building a new base, as it trades around its 50-day line after gains in recent sessions. Google stock lost 1.3% Friday, right at the key 50-day line.
On Jan. 30, Alphabet reported fourth-quarter earnings and revenue that topped analyst estimates. But shares tumbled as the search giant’s core advertising business slightly missed views.
Google debuted its Gemini AI model on Dec. 6. However, the demo video displaying the AI’s capabilities turned out to be edited, Bloomberg reported. Google admitted the demo was created using still image frames from the footage with additional prompts via text, as well as edited to make Gemini response times appear quicker.
Nvidia Stock Leads Magnificent Seven
Among the Magnificent Seven stocks, Nvidia (NVDA) is the top performer in 2024, with a scorching 87% year-to-date return through March 7.
The AI giant is sharply extended past a new flat base’s 505.48 buy point after a Jan. 8 breakout move. Shares dipped 0.1% Friday. Nvidia is an IBD Leaderboard stock.
On Feb. 21, Nvidia beat Wall Street’s targets for its fiscal fourth quarter and guided higher than views for the current period.
Nvidia’s Q4 report marked its third straight quarter of triple-digit percentage growth in sales and earnings. And its sales growth has accelerated for the past three quarters.
“Accelerated computing and generative AI have hit the tipping point,” Chief Executive Jensen Huang said in a news release. “Demand is surging worldwide across companies, industries and nations.”
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Tesla Stock Hits New Lows
Tesla (TSLA) climbed 0.7% Friday. Shares hit recent lows this week.
On Jan. 24, the electric-vehicle giant said that earnings fell 40% to 71 cents per share while revenue totaled $25.17 billion, up 3.5% vs. the year-ago period. Wall Street expected earnings of 73 cents a share on revenue of $25.62 billion. For 2023, Tesla earnings fell 23% to $3.12 a share while revenue increased 19% to $96.77 billion vs. estimates of $3.05 on sales of $97.5 billion.
Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Two Dow Jones names among the Magnificent Seven stocks, Apple (AAPL) and Microsoft (MSFT) traded lower on the stock market today.
Apple stock lost 0.2% Friday. Shares are below their 200-day line.
On Feb. 1, Apple beat Wall Street’s targets for its fiscal first quarter, thanks to iPhone 15 handset sales and services growth.
According to MacRumors and other outlets, Apple could have a generative AI feature — internally known as Apple GPT — available on the iPhone and iPad sometime late next year.
Meanwhile, Microsoft stock is rallying from support around its 50-day line, a key area to watch. The stock moved down 2.1% Friday, falling from Thursday’s new highs.
On Jan. 30, Microsoft beat Wall Street’s targets for its fiscal second quarter thanks to strong cloud computing business.
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