Magnificent Seven: can they continue to dominate in 2024?

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The Magnificent Seven – Apple, Alphabet, Amazon, NVIDIA, Microsoft, Meta Platforms, Tesla – individually soared between around 50% and 240% in 2023. But are they still a buy? Should you cherry pick, or are they looking risky?

Written by: Angeline Ong | Financial Analyst, Presenter and Content Editor, London

 

Publication date: Monday 05 February 2024 14:34

 

The outlook of the Magnificent Seven in 2024

In 2023, a group of seven influential companies, known as the Magnificent Seven, had a big impact on the market. These companies include Microsoft, Meta Platforms, Tesla, Apple, Alphabet, Amazon, and NVIDIA. Now, after their earnings reports, investors are wondering if these companies are still a good investment.

Amazon

Let's start with Amazon. Their shares went up after a strong performance in the December quarter. They surpassed revenue expectations, especially in online spending during the important holiday season.

Alphabet

On the other hand, Alphabet, the parent company of Google, disappointed investors with lower sales than expected in holiday season advertising. They also announced that they would be spending more on AI infrastructure, which raised concerns about costs.

Microsoft

Microsoft did better than expected in terms of profit and revenue. However, investors started to question whether the money they were putting into AI would pay off in the long run. Despite that, Microsoft's new AI features have been attracting customers to their Azure cloud services.

Meta

Meanwhile, Facebook reached a record high in its stock price and is now valued at around $1.1 trillion. Their revenue also increased by 25% due to strong advertising and device sales.

Apple

Apple had some challenges in China as their sales in the country fell short of estimates. This disappointment caused a decline in Apple's stock price. They also faced tough competition in China as they released their Vision Pro.

Tesla

Lastly, Tesla had a major setback. Their shares dropped to the lowest point in eight months, leading to a loss of about $80 billion in market value. This drop came after Elon Musk warned of slower growth in 2024.

In conclusion

Given these circumstances, investors might choose to take their profits and diversify their investments. However, some argue that these companies have become safe bets because of their large size, making them less likely to fail. Ultimately, the decision to buy, hold, or sell stocks from these companies depends on each individual's perspective and investment strategy.

 

 

 

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