How Are the ‘Magnificent 7’ Stocks Performing in 2024 So Far?
Written by
David Nadelle
Edited by
Nicholas Morine
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For many investors, one of the brighter stock market stories last year was the remarkable rise of the so-called “Magnificent 7” stocks, the name given to a group of tech companies that outperformed the overall market by a wide margin.
For those out of the loop, the “Magnificent 7” stocks — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) — drove the S&P 500 in 2023 and account for about half of the weighting of the Nasdaq index. The index is loaded with high market capitalization, tech-heavy companies, many of whom are invested in artificial intelligence (AI) capabilities.
As Forbes noted, the group as a whole is up about 13% year-to-date on average, but some group members have underperformed. “Some of the shine has come off the group as a whole in the early stages of 2024,” stated The Motley Fool. Tesla and Apple are trading in the red this year, but the other giants are surviving or thriving.
Here’s how each “Magnificent 7” company is doing so far this year.
Alphabet (GOOGL)
Despite its advertising sales increasing 11% in the fourth quarter, to $65.5 billion from $59.0 billion a year prior, Alphabet fell short of Wall Street expectations. Shares for Google’s parent tumbled at the beginning of the year. Alphabet has been slow out of the gate compared to some of the others in the group, up around 9% after a March rally.
Amazon (AMZN)
The e-commerce giant is up 19% since the start of the year and around 77% in the last year. As the world’s biggest cloud service operator, Amazon leads a number of tech areas and has the potential to steer the ever-expanding generative AI market.
Apple (AAPL)
When Apple reported its fiscal first quarter results for 2024, CEO Tim Cook boasted, “Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services.” However, there are significant concerns. With a decline in sales (primarily in China) and a stock slide of nearly 12% this year, experts like Seeking Alpha’s Bret Jensen predicted the following: “An ordinary year for the company and its shareholders.”
Meta (META)
Meta has had a strong start to 2024, exceeding analyst earnings and revenue growth expectations in the most recent quarter. Per USA Today, its $40.1 billion in revenue is up 24.7% from a year ago — and net income is up 201.3%, to $14 billion, in the quarter.
Microsoft (MSFT)
The world’s largest company has a market cap of around $3.13 trillion and has performed admirably in the first quarter of the year. Shares are up 13% in 2024 and more than 50% in the past 12 months. The company will be continue to be a major player in the AI game and may continue to be a strong buy.
Nvidia (NVDA)
After Nvidia’s stock gained a whopping 239% in 2023, it’s not showing any signs if slowing down in 2024. Shares of the leading chip and artificial intelligence giant have climbed more than 80% so far this year. While some experts are predicting a slowdown, the company is worth more than Alphabet and Amazon and continues to smash earnings estimates every quarter.
Tesla (TSLA)
According to CNBC, Tesla’s 29% first quarter share drop is its worst since the end of 2022 and its third-worst quarter on record. Amid stiff competition from China, production disruptions in Europe and a slowed growth rate, invested stakeholders will be looking to Tesla’s outspoken CEO to turn things around in 2024.
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