Don't fight the Mag 7?
The ratio of the Mag 7 vs the S&P 493 (S&P 500 ex Mag 7) has just hit another ATH. Source: Bloomberg, HolgerZ
This week is a big one for earnings with Microsoft, Alphabet and Meta all reporting their Q1 numbers.
Note that ex-Nvidia, profit growth for the Mag7 narrows in Q1 and is expected to shrink in 2024 Source: Bloomberg
An exciting stat from Goldman: Just 10y ago, the collective market cap of the Mag 7 was $1.5tn.
Today, that stands at $13.5tn. Source: GS, HolgerZ
The Mag7's weighting in the SP500 just hit another new high
Source: Cheddar Flow
Total Cash Net of Debt...
Google $GOOGL: $98 billion Apple $AAPL: $65 billion Meta $META: $47 billion Amazon $AMZN: $28 billion Microsoft $MSFT: $20 billion Nvidia $NVDA: $16 billion Source: Charlie Bilello
Remember when unprofitable tech was all the rage in 2021?
It never really recovered. All the money went into the Mag7 stocks instead, and to a lesser extent profitable NASDAQ companies. Chart: TS Lombard thru Markets & Mayhem
The end of Mag7?
Last year the Mag7 essentially moved in unison and was the make-or-break trade. 2 months into 2024 there is a HUGE dispersion in the group. Source: Bloomberg, HolgerZ
Not all Tech stocks are magnificent...
$AAPL and $TSLA the main downside outliers...
