The actions of the Wall Street’s Magnificent Seven Apple, Microsoft, Alphabet (Google parent), Amazon, Nvidia, Meta Platforms and Tesla They lived up to their name in 2024 with big profits. All of them have maintained solid progress so far this year, but they are correcting strongly this Friday, December 27.
Due to their huge market capitalizations, the shares of the “Magnificent Seven“ exert a disproportionate influence on the indices Nasdaq Composite and S&P 500which are weighted by market capitalization. Thus, the S&P 500 lost more than 1.3% and the Nasdaq almost 2%. Well, for example, Tesla’s stock lost about 5%, Amazon’s 2.1%, Meta’s 2%, Google’s 2.2%; Apple cuts 1.9%, Microsoft cuts 2.7% and the star of the New York market, Nvidia, gives up 2.6%.
Nvidia shares fall from a key level
Nvidia shares fell 0.2% on Thursday, snapping a four-day winning streak. The stock is struggling to break above its 50-day line, a key resistance level to watch. This Friday, Nvidia fell even further, with a drop of 3%.
In recent weeks, Nvidia beat Wall Street expectations for its fiscal third quarter, although its sales outlook for the current period was only slightly above projections.
The artificial intelligence chip maker earned an adjusted 81 cents per share on sales of $35.08 billion in the quarter ended Oct. 27. Analysts surveyed by FactSet expected earnings of 75 cents per share on sales of $33.17 billion. In the same period a year earlier, Nvidia earned 40 cents per share on sales of $18.12 billion.
Amazon Stock
Amazon.com (AMZN) had regained its $201.20 buy point during recent advances. However, shares fell more than 2.2% on Friday.
On Oct. 31, Amazon reported that it earned $1.43 per share on sales of $158.9 billion in the quarter that ended in September. Analysts surveyed by FactSet projected adjusted earnings of $1.14 per share on sales of $157.3 billion.
Through its Amazon Bedrock platform, the e-commerce and cloud giant offers a fully managed service with high-performance foundation models (FMs) from leading artificial intelligence companies such as AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
Tesla Stock
Tesla (TSLA) fell more than 5% on Friday, extending Thursday’s losses. The electric vehicle giant hit an all-time high last week, hitting $488.53.
On October 23, Tesla surprised with a gain in third-quarter earnings, with quarterly earnings growing 9%, capping off a big month of announcements for the company. However, revenue fell short of expectations.
Apple and Microsoft
In addition to the recently added Nvidia, there are two other Dow Jones stocks in the Magnificent Seven: Apple (AAPL) and Microsoft (MSFT).
Apple shares fall 1.2% on Friday, still outside the buying range above the 237.49 point in a flat base. The stock set new all-time highs on Thursday.
On October 31, the consumer electronics giant offered weak sales guidance for the December quarter. Analysts note that the iPhone 16 update cycle is taking longer to materialize due to the slow rollout of the company’s much-touted artificial intelligence features.
The Cupertino, California-based company beat Wall Street expectations for its fiscal fourth quarter, which ended Sept. 28. It earned an adjusted $1.64 per share, up 12% year-over-year, on sales of $94.93 billion, up 6%.
For its part, Microsoft exceeded Wall Street expectations for its first fiscal quarter thanks to a strong cloud computing business on October 30. However, the company offered lower-than-forecast sales guidance for the current quarter.
The Redmond, Washington-based company earned $3.30 per share on sales of $65.6 billion in the quarter ended Sept. 30. Analysts surveyed by FactSet expected earnings of $3.10 per share on sales of $64.6 billion. On a year-over-year basis, Microsoft’s profits rose 10% while sales rose 16%.
Source: Ambito
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