Magnificent Seven Stocks – Giants of the S&P 500 Amazon.com (AMZN), apple (AAPL), Google parent company alphabet (Google), meta platform (meta), microsoft (MSFT), Nvidia (NVDA) and tesla (TSLA) — grouped together since the start of the bull market in January 2023.
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But from mid-2023 onwards, and certainly into 2024, we will see a clear difference between these seven megacaps. In both time frames, the Fab Five stocks of Nvidia, Metaplatform, Google, Microsoft, and Amazon are rising. All stocks have outperformed the S&P 500 and Nasdaq Composite since mid-2023, with only Google lagging slightly in 2024. Apple stock is down slightly in both cases.
Tesla stock has lagged significantly over these periods, and is the worst performer in the S&P 500 so far in 2024. The biggest winners on the S&P 500 this year are Meta Platforms and Nvidia.
While major EV companies are slumping and rivals are gaining momentum, the company’s market capitalization is less than half that of its peer group, the Magnificent Seven.
Magnificent Seven stock price performance
| company | ticker | Stock price trends after June 30th | Change in 2024 |
|---|---|---|---|
| meta platform | meta | 65.51% | 34.19% |
| Nvidia | NVDA | 56.40% | 33.60% |
| Amazon | AMZN | 31.80% | 13.08% |
| microsoft | MSFT | 20.76% | 9.36% |
| 18.95% | 1.93% | ||
| apple | AAPL | -4.19% | -3.47% |
| tesla | TSLA | -28.22% | -24.4% |
| S&P500 | 11.42% | 4.1% | |
| Nasdaq | 13.35% | 3.96% |
S&P 500 Mega Cap Revenue
The fundamentals also show a separation between the Fab Five and their not-so-great peers. Metaplatform and his Nvidia are experiencing rapid growth. While Google and Microsoft are posting solid double-digit growth, Amazon’s revenue has rebounded sharply.
Apple’s profit growth is accelerating, but sales in China are a major concern. Tesla’s profits are plummeting with little growth engine until 2025.
Finally, Nvidia and Microsoft are leaders in artificial intelligence, a transformational theme that is driving the market’s rise. Meta, Google, and Amazon are also important players. Amazon, Microsoft, and Google are also cloud computing giants, and Nvidia is also backing many of their efforts.
Of course, the technical and fundamental aspects of these S&P 500 major stocks can change in a matter of days.
Meta stocks and Nvidia are doing well IBD Leaderboard. Nvidia stock is listed on SwingTrader. MSFT stock is featured in his IBD Long Term Leaders. Nvidia, Meta, and Microsoft are all IBD50.Nvidia is IBD big cap 20.
metastock
Meta stock is up 34.2% in 2024 as of February 1st, part of a 65.5% rise since June 30th.
With a 20% jump on Feb. 2 following explosive fourth-quarter earnings, strong guidance, a first-ever dividend, and a $50 billion share buyback plan, Meta is now exceeded NVIDIA in the period of .
Stock prices remained flat from late July to mid-December, but their relative strength remained or even increased. Since mid-December, stock prices have risen rapidly.
Over the past few quarters, meta revenue has increased -52%, -3%, +31%, +168%, and +203%.
Some of that reflects cost reductions through headcount cuts and curbed Metaverse ambitions. But it also reflects the resurgence of online advertising. Revenue growth improved from -4% to +25% over the same period.
nvidia stock
Nvidia stock is up 33.6% in 2024 and 56.4% since June 30th. His NVDA stock, which was the S&P 500 index’s best performer in 2023, will be second only to Metaplatform in 2024.
Nvidia, the leader in AI chips, spent most of the second half of 2023 moving sideways.
NVDA stock finally broke out of the range on January 8th, marking a strong breakout.
Nvidia and rivals Advanced Micro Devices (AMD) announced a new AI chip on the same day.
This fueled a big rally for chips and the overall market, weathering a tough start to 2024.
NVIDIA’s revenue is exploding on the back of strong demand for high-performance chips for AI. Over the past two quarters, his earnings per share have soared 429% and 593%, while sales have increased 101% and 206%.
Nvidia doesn’t plan to release fourth-quarter results until late February.
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amazon stock
Amazon stock is up 13.1% this year and 31.8% since mid-2023.
Those gains accelerated significantly on February 2nd, when the stock rose nearly 8% on strong fourth-quarter earnings and improved growth at Amazon Web Services.
The stock price definitively cleared the consolidation in mid-December and has now expanded further from there. AMZN stock is likely still within its 10-week rebound range, but Thursday’s earnings release will significantly increase the risk.
Amazon’s revenue has improved dramatically every quarter, from 3 cents in Q4 2022 to 31 cents in Q1 2023, 65 cents in Q2, and 94 cents in Q3. And in the fourth quarter, it was $1. Revenue growth has accelerated over the past three quarters, reaching 14% in the third quarter.
S&P 500 Stock: Microsoft
Microsoft stock is up 9.4% in 2024 and 20.8% since June 30th.
The Dow Jones behemoth paused from mid-July to late October, but rose following first-quarter results. MSFT stock then stalled in the buy zone for two months, but bounced back from its 50-day line in the first few days of 2024.
After strong second-quarter results, the stock reversed its all-time high as its earnings outlook fell slightly short of views.
Microsoft stock currently has a market capitalization of $3.056 trillion, which is higher than Apple’s valuation of $2.89 trillion.
Microsoft’s profits have increased 27% and 26% over the past two quarters. Revenue growth accelerated slightly over the past four quarters, from 2% to 18%.
google stock
Google stock is up 1.9% in 2024 and nearly 19% since mid-2023.
Shares fell on January 31 after disappointing online advertising revenue following fourth-quarter results. GOOGL stock is technically back in buy range just above its 50-day line.
Still, Google’s revenue has increased 42% over the past two quarters, and revenue growth has accelerated over the past four quarters.
apple stocks
Apple stock is down 3.5% so far in 2024 and 4.2% since mid-2023.
The stock price fell sharply into early 2024 following a series of analyst downgrades.
Apple’s earnings growth has accelerated over the past four quarters from -10% to 0% to +5% to +13% to +16%. Sales increased 2% in the fiscal first quarter, ending four consecutive quarters of year-over-year declines. The year goes down.
However, after the Chinese sales figures were revealed, Apple downwardly revised its results for this quarter.
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tesla stock
Tesla shares have fallen 24.4% so far in 2024 and 28.2% since mid-2023, their worst level since May of last year. RS Line is at a one-year low.
TSLA stock was the worst performing stock in the S&P 500 index in 2024.
On July 19, just before last year’s second-quarter results, the stock hit a 52-week high of 299.29. Tesla has sold off significantly following its past four earnings reports.
Last week, Tesla reported that fourth-quarter profits fell 40% year-over-year while sales rose just 3.5%, both of which were slightly below valuations. To make matters worse, the EV giant expects delivery growth to be “significantly lower” in 2024, but provides few specifics about sales numbers or profit margins. The next generation of EVs could start production at the end of 2025, but Elon Musk said that may be “optimistic”. Regarding the moonshot, Musk said his company’s Dojo chips are a “long shot” and that Tesla will continue to buy Nvidia chips for its AI efforts.
Despite the recent decline, Tesla stock trades at 60 times forward earnings, the highest of the Magnificent Seven.
A new Magnificent Seven?
Alternatively, you can forge a new Magnificent Seven by: taiwan semiconductor manufacturing (TSM) and Eli Lilly (Lily) Join the Fab 5.
Taiwan Semi manufactures chips for Nvidia, Apple, and others, and is at the forefront of chip manufacturing technology. And it’s also the market mover. Its bullish 2024 earnings forecast sent chipmakers and chipgear makers soaring.
S&P 500 giant Eli Lilly and Denmark’s novo nordisk (NVO) is a leader in weight loss drugs. Along with artificial intelligence, weight loss drugs have the potential to transform society and many industries.
Both TSM stock and Eli Lilly are up a solid 11.3% and 14.5%, respectively, heading into early 2024. Both stocks have been performing well since mid-2023, with Taiwanese Cicada stock rising 14.7% and LLY stock rising 42.4%.
Both companies currently have a higher market capitalization than Tesla stock.
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