Magnificent 7 Stocks Experience Mixed Performance In Q3 2024

The group of high-profile technology stocks known as the Magnificent Seven—comprising Apple, Microsoft, Alphabet (Google’s parent company), Amazon.com, Nvidia, Meta Platforms, and Tesla—demonstrated significant gains in 2023. However, their performance diverged in the third quarter of 2024, with recent weeks witnessing a period of decline before a rebound.

Performance Overview

The Magnificent Seven stocks, due to their substantial market capitalizations, have a significant impact on the Nasdaq Composite and S&P 500 indexes. Here’s a snapshot of their year-to-date performance as of August 12, 2024:

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%

Nvidia’s Recovery

Nvidia (NVDA) saw a rebound with a 0.9% increase on Wednesday, marking its third consecutive day of gains. The stock has been strong throughout the year, bolstered by impressive fiscal first-quarter results and an optimistic outlook. A 10-for-1 stock split, effective June 10, also contributed to its gains. Despite recent fluctuations, Nvidia remains a key player with its stock hitting all-time highs earlier this year.

Amazon Faces Resistance

Amazon.com (AMZN) encountered resistance at its 200-day moving average, with shares falling 0.3% on Wednesday. The company’s second-quarter results were mixed: while earnings exceeded expectations, revenue fell short. The firm’s sales forecast also disappointed, despite a robust performance from its cloud computing division.

Tesla Below Key Levels

Tesla (TSLA) dropped 3.7% on Wednesday, falling below its 200-day moving average and remaining under its 50-day line. The company’s second-quarter results were mixed, with a significant earnings decline of over 40%, though sales surpassed expectations.

Apple and Microsoft Maintain Stability

Among the Dow Jones components in the Magnificent Seven, Apple (AAPL) saw a slight 0.1% increase on Wednesday, maintaining its position above the 50-day moving average. Recent results showed Apple surpassing fiscal third-quarter expectations, driven by record services revenue and strong iPad sales.

Microsoft (MSFT) has also shown resilience, with its stock performance remaining relatively stable.

Meta’s Performance

Meta Platforms (META) remains above its 50-day moving average despite a 0.9% drop on Wednesday. The company reported strong second-quarter earnings, exceeding expectations for its advertising business and allowing for further investment in AI projects. Meta holds a notable IBD Composite Rating of 88.

Alphabet’s Earnings Slide

Alphabet (GOOGL) experienced a decline, with shares falling 3.2% on Wednesday, though they stayed above the long-term 200-day moving average. The company’s second-quarter earnings and revenue surpassed analyst estimates, but higher expected expenses for the upcoming quarter have dampened margin growth prospects.