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...
Magnificent 7 Corporate Executives are dumping shares are the fastest rate since 2021 🚨
Source: Barchart, Bloomberg
Cartoon of the Day by Hedgye:
The Magnificent7 are dropping like flies
Market concentration mirroring earnings concentration
Source: Blackrock
The Magnificent 7 are now up ~1,700% since 2015 compared to the S&P 500's ~140% gain.
Even the Nasdaq Composite Index, the largest tech index in the world, is up just ~230% since 2015. Source: DB, TME
A record day on Wall Street: MAG7 stocks added over $500BN today to a new record high, second only to 11/10/22's explosion higher driven by AAPL...
And all that market cap gain was driven by a $2.1BN 'guide-up' on nvidia Q1 revenue... $NVDA stock is up +$277BN today, adding the most market cap in a single-day ever - up $277BN...That is 2 Goldmans, half a JPMorgan, or a whole Netflix or Adobe added in a day...And as goes NVDA, so goes the entire stock market with Nasdaq leading the charge (up 3%) and the S&P up over 2%. Small Caps lagged with a mere 0.75% gain... Source: www.zerohedge.com
