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 the third quarter of 2024 showed a big divergence of returns. The Magnificent Seven stocks are among the best stocks to watch on 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) | +24.0% |
| Amazon | (AMZN) | +28.4% |
| Apple | (AAPL) | +18.2% |
| Meta Platforms | (META) | +44.9% |
| Microsoft | (MSFT) | +20.9% |
| Nvidia | (NVDA) | +157.3% |
| Tesla | (TSLA) | -3.0% |
Source: IBD Data As Of July 12, 2024
Magnificent Seven Stocks: Amazon Below Buy Point
Amazon.com (AMZN) is below a 191.70 buy point in a flat base after recent losses. Amazon fell 1.1% Tuesday, still below its key 50-day line. A heavy volume fall through this level would be a sell signal for investors to watch.
In late April, the e-commerce giant reported first-quarter earnings and sales that exceeded expectations, helped by strong growth for its cloud-computing and advertising businesses.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
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Alphabet Slides On Earnings
Google parent Alphabet (GOOGL) set new highs in recent weeks, sharply above a 153.78 entry. The stock inched lower Tuesday, still sharply below its 50-day line after last week’s decline.
Last week, 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.
Nvidia Stock Leads Magnificent Seven
Among the Magnificent Seven stocks, Nvidia (NVDA) is the top performer in 2024, with a scorching 157% year-to-date return through July 12.
Nvidia stock tumbled 5.8% Tuesday, further below the 50-day moving average line, a key level to watch. A breach of that level in heavy volume is a sell signal.
In recent weeks, the stock 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. Nvidia stock topped a split-adjusted handle buy point at 92.22, and shares gapped up to all-time highs. Nvidia stock also moved above a split-adjusted entry at 97.40.
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Tesla Stock Falls
Tesla (TSLA) dropped 3.9% Tuesday. Shares closed last week at their lowest level since early July following the company’s Q2 earnings report.
Last week, electric-vehicle giant 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 among the Magnificent Seven stocks, Apple (AAPL) and Microsoft (MSFT), traded lower on the stock market today.
Apple stock moved down 0.6% Tuesday, still out of buy range above a 199.62 entry. Apple hit a record high on July 15.
In early May, Apple narrowly beat Wall Street’s estimates for its fiscal second quarter. The iPhone maker also raised its quarterly dividend and stock buyback plan.
In late April, Microsoft beat estimates for its fiscal third quarter, thanks to healthy cloud computing business. Shares moved down 1.4% in Tuesday’s trading, still below a flat base’s 430.82 buy point and the 50-day line.
The software giant will report earnings after the closing bell Tuesday. The company is expected to earn $2.94 per share on revenue of $64.4 billion, per IBD MarketSurge.
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