The Magnificent Seven stocks — S&P 500 giants Amazon.com, Apple, Google parent Alphabet, Meta Platforms, Microsoft, Nvidia and Tesla — have been grouped together since the start of the bull market in January 2023.
But since mid-2023, and certainly in 2024, there is a clear distinction among these seven megacaps. By both time frames, the Fab Five of Nvidia, Meta Platforms, Google, Microsoft and Amazon stock are up. All are outpacing the S&P 500 and the Nasdaq composite since mid-2023, with only Google slightly lagging in 2024. Apple stock is down slightly in both instances.
Tesla stock is a huge laggard over these time frames, and is the S&P 500's worst performer so far in 2024. Meta Platforms and Nvidia are the S&P 500's biggest winners this year.
With the EV giant tumbling and rivals advancing, its market cap is less than half of any of its Magnificent Seven peers.
Magnificent Seven Stock Performance
| Company | Ticker | Stock chg since June 30 | 2024 chg |
|---|---|---|---|
| Meta Platforms | META | 65.51% | 34.19% |
| Nvidia | NVDA | 56.40% | 33.60% |
| Amazon | AMZN | 31.80% | 13.08% |
| Microsoft | MSFT | 20.76% | 9.36% |
| GOOGL | 18.95% | 1.93% | |
| Apple | AAPL | -4.19% | -3.47% |
| Tesla | TSLA | -28.22% | -24.4% |
| S&P 500 | 11.42% | 4.1% | |
| Nasdaq | 13.35% | 3.96% |
S&P 500 Megacap Earnings
The fundamentals also show a separation among the Fab Five and their not-so-magnificent peers. Meta Platforms and Nvidia are seeing skyrocketing growth. Amazon earnings are roaring back while Google and Microsoft are delivering solid double-digit growth.
Apple earnings growth is picking up, but China sales are a big concern. Tesla earnings are plunging with few growth drivers through 2025.
Finally, Nvidia and Microsoft are leaders in artificial intelligence, the transformational theme driving the market rally. Meta, Google and Amazon are significant players as well. Amazon, Microsoft and Google also are cloud-computing giants, with Nvidia powering much of those efforts too.
Of course, these S&P 500 titans could look different in a few days on technicals and fundamentals.
Meta stock and Nvidia are on IBD Leaderboard. Nvidia stock is on SwingTrader. MSFT stock is on IBD Long-Term Leaders. Nvidia, Meta and Microsoft are all on the IBD 50. Nvidia is on the IBD Big Cap 20.
Meta Stock
Meta stock has rallied 34.2% in 2024 as of Feb. 1, part of a 65.5% sprint from June 30.
Meta is now outpacing Nvidia over those timeframes, thanks to a 20% spike on Feb. 2 following blowout Q4 earnings, strong guidance, a first-ever dividend and a $50 billion buyback plan.
Shares moved sideways from late July to mid-December, though its relative strength line held up or even advanced. Since mid-December, shares have climbed rapidly.
Meta earnings have ramped up from -52% to -3% to +31%, +168% and +203% in the past few quarters.
Some of that reflects cost curbs from job cuts and reining in metaverse ambitions somewhat. But it also reflects revived online advertising. Revenue growth has improved from -4% to +25% over the same span.
Nvidia Stock
Nvidia stock has run 33.6% higher in 2024 and 56.4% since June 30. The S&P 500 index's best performer in 2023, NVDA stock is No. 2 in 2024, behind only Meta Platforms.
AI chip leader Nvidia spent most of the second half of 2023 moving sideways.
NVDA stock finally cleared its range on Jan. 8, with a powerful breakout.
Nvidia and rival Advanced Micro Devices announced new AI chips that day.
That fueled a big rally in chips and the broader market, shrugging off a rough start to 2024.
Nvidia earnings are exploding amid voracious demand for its high-powered chips for AI. Earnings per share skyrocketed 429% and 593% in the past two quarters, with revenue up 101% and 206%.
Nvidia won't report fiscal Q4 results until late February.
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Amazon Stock
Amazon stock has advanced 13.1% this year and 31.8% since mid-2023.
Those gains got a big boost on Feb. 2, with shares up nearly 8% following strong Q4 earnings and improved Amazon Web Services growth.
Shares decisively cleared a consolidation in mid-December and are now extended from that. AMZN stock arguably is still in range of a 10-week line bounce, though Thursday's earnings report would greatly add to the risk.
Amazon earnings have improved dramatically on a quarter-to-quarter basis, from 3 cents in Q4 2022 to 31 cents in Q1 2023, 65 cents in Q2, 94 cents in Q3 and $1 in Q4. Revenue growth has picked up for the past three quarters, to 14% in Q3.
S&P 500 Stock: Microsoft
Microsoft stock has rallied 9.4% in 2024 and 20.8% since June 30.
The Dow Jones giant paused from mid-July to late October, but then ran up following fiscal Q1 earnings. MSFT stock then paused for two months in the buy zone, before rebounding from the 50-day line a few days into 2024.
Shares reversed lower from a record high following strong fiscal Q2 earnings, as revenue guidance was just below views.
Microsoft stock now boasts a $3.056 trillion market cap, exceeding Apple's valuation of $2.890 trillion.
Microsoft earnings rose 27% and 26% in the last two quarters. Sales growth has modestly accelerated for the past four quarters, from 2% to 18%.
Google Stock
Google stock has gained 1.9% in 2024, with a near-19% jump since mid-2023.
Shares tumbled on Jan. 31 following Q4 results, with online ad revenue disappointing. GOOGL stock is technically back in a buy range, just above its 50-day line.
Still, Google earnings have grown 42% in the last two quarters while revenue growth has accelerated for the past four quarters.
Apple Stock
Apple stock is down 3.5% so far in 2024 and off 4.2% since mid-2023.
Shares fell significantly to start 2024 amid a flurry of analyst downgrades.
Apple earnings growth has accelerated for the last four quarters, from -10% to 0%, to +5%, +13% and +16% Sales grew 2% in fiscal Q1, ending a four-quarter string of year-over-year declines.
But China revenue came in light, while Apple guided lower on the current quarter.
Shares
Amazon Partner Leads Three AI Stocks Near Buy Points
Tesla Stock
Tesla stock has plunged 24.4% so far in 2024 and 28.2% since mid-2023, skidding to their worst levels since last May. The RS line is at a one-year low.
TSLA stock is the worst performer on the S&P 500 in 2024.
Shares hit a 52-week high of 299.29 on July 19, just before Q2 earnings last year. Tesla has sold off hard after the last four earnings reports.
Last week, Tesla reported a 40% dive in Q4 earnings vs. a year earlier while sales grew just 3.5%, both slightly missing views. Worse, the EV giant forecast "notably lower" delivery growth in 2024 but gave few specifics on volumes and profit margins. A next-generation EV could start production in late 2025, but Elon Musk said that might be "optimistic." As for moonshots, Musk said in-house Dojo chips are a "long shot," saying that Tesla will keep buying Nvidia chips for its AI efforts.
Despite its recent tumble Tesla stock has a forward price-to-earnings ratio of 60, by far the highest in the Magnificent Seven.
New Magnificent Seven?
Alternatively, a new Magnificent Seven could be forged with Taiwan Semiconductor Manufacturing and Eli Lilly joining the Fab 5.
Taiwan Semi, which makes chips for Nvidia, Apple and many others, is at the cutting edge of chipmaking technology. And it's a market mover. Its bullish 2024 revenue forecast sent chipmakers and chip-gear makers soaring.
S&P 500 giant Eli Lilly, along with Denmark's Novo Nordisk, is a weight-loss drug leader. Along with artificial intelligence, weight-loss drugs have the potential to transform society and many industries.
Both TSM stock and Eli Lilly are up solidly to start 2024, 11.3% and 14.5%, respectively. Both are strong since mid-2023, with Taiwan Semi up 14.7% and LLY stock 42.4%.
Both have higher market caps than Tesla stock now.
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