The Magnificent Seven aren’t looking so magnificent anymore. In fact, they’re not even looking good.
Check out the MoneyShow Chart of the Day below. It shows the year-to-date performance of the Mag 7 stocks – Tesla Inc. (TSLA), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), Apple Inc. (AAPL), Nvidia Corp. (NVDA), and Amazon.com Inc. (AMZN) – and the SPDR S&P 500 ETF (SPY).
The Not-So-Magnificent 7 (YTD & Change)
The SPY was recently up about 1.4% YTD. Six out of seven of the “Magnificents” are underperforming that. Tesla is in freefall.
Only Meta is bucking the trend. But even shares of the social media and digital advertising giant are giving back some of their recent gains.
What gives? TSLA is getting whacked by the unwinding of “Trump Trades” put on in the wake of the 2024 election. Investors are increasingly worried about stubborn inflation and the impact of tariffs on growth and consumer prices, so they’re dumping the stuff they previously bought.
Other tech names are getting hit by concerns over the future level of AI spending (and whether all the money spent to date will pay off with higher profit growth down the road). Plus, we’re seeing broader rotational action. Some investors are targeting left-for-dead defensive and value stocks. Others are rotating into S&P sectors like financials and real estate.
My advice? Recognize. Then adapt. Don’t get stuck focusing solely on OLD winners. Focus more on NEW ones.
