MAGNIFICENT 7 ENTERS CORRECTION TERRITORY
The equal weight Magnificent 7 index is now down 10% off its most recent All Time Highs the technical definition of a Correction - Bloomberg (Magnificent 7 = Apple, Nvidia, Microsoft, Amazon, Google, Meta, Tesla) Source: Bloomberg, Evan
Wake up it is nvdia $NVDA earnings week...
Disappointing data could be a major blow for all Mag 7. Will a positive surprise trigger a revival of Mag 7 relative strength versus the rest of the world?
Can you believe it?
European banks have outperformed the Mag 7 over the past two years.... via @GoldmanSachs
Magnificent 7 stocks have underperformed the market in 2025:
The Magnificent 7 stocks are down -1.4% while the S&P 500 itself is up ~2.9%. Meanwhile, the remaining 493 stocks in the S&P 500 have gained +6.6%. To put this into perspective, in 2024, the Magnificent 7 stocks returned +67.4% while the remaining 493 firms gained just +5.0%.
💻 AI hardware & infrastructure were the biggest beneficiaries of the AI boom with Microsoft, Amazon, Oracle, Google, Meta and others spending zillions.
With the rise of DeepSeek & other small models, questions are the following: 1) Will these giants maintain their spending forecasts? 2) How they justify it after DeepSeek release? 3) Will the perceived value move up the chain towards applications? Source: Deutsche Bank thru Ali Dhanji @DhanjiatRJ on X
Over a third of the S&P 500 is now concentrated in the "Magnificent Seven" stocks, up from a fifth of the index two years ago.
Source: Charlie Bilello
Mag 7 EPS vs SPX last 20 years
Source: GS, Mike Zaccardi, CFA, CMT, MBA
The Enormous Eight: 2024 Returns
Nvidia $NVDA: +171% Netflix $NFLX: +83% $META: +66% Tesla $TSLA: +63% Amazon $AMZN: +44% Google $GOOGL: +36% Apple $AAPL: +31% -S&P 500 $SPY: +25% Microsoft $MSFT: +13% -S&P Equal Weight $RSP: +13% -S&P SmallCap $IJR: +9% Source: Charlie Bilello
