The highly influential “Magnificent Seven,” a group of megacap technology stocks, has experienced a colossal loss in value since reaching its peak at the end of July. According to an analysis by Dow Jones Market Data, these leading companies in terms of market capitalization have seen a combined evaporation of $1.24 trillion.
The Giants Lament
Among the seven prominent companies in this group are Alphabet Inc.’s Class A and Class C shares, Amazon.com Inc., Meta Platforms Inc., Tesla Inc., Microsoft Corp., Apple Inc., and the artificial-intelligence favorite, Nvidia Corp.
The significant decline in market value is primarily led by Apple Inc., witnessing a staggering loss of $480.7 billion during this period. Tesla Inc. is not far behind, shedding $194.7 billion following its disappointing earnings report from last week.
A Comparison to Remember
It is worth noting that these same stock giants lost an astounding $4.7 trillion during the stock-market rout of 2022, with some members enduring drawdowns exceeding 60%, according to FactSet data.
Standing Tall Despite Setbacks
Despite recent setbacks, the Magnificent Seven still maintain substantial gains year-to-date. According to Dow Jones data, they have amassed a market value increase of over $3.3 trillion. On average, their overall gains for the year are approximately 50%, as reported by FactSet.
A Glimpse into the Future
While some analysts predict further weakness ahead due to a bearish technical chart pattern, the group experienced a temporary upturn on Friday. This upswing was propelled by Amazon’s impressive earnings, causing the e-commerce giant’s shares to soar by nearly 7%. Consequently, this uplift benefitted most of its megacap peers. However, both the S&P 500 and the Dow Jones Industrial Average remained poised for yet another loss.
Note:To learn more about Tesla’s recent earnings report disaster, refer to the following link: Tesla Stock Falls After Its Earnings ‘Mini-Disaster’.
