Magnificent 7 Still Magnificent as the Halfway Mark Approaches?

Key Points

• As we approach the midpoint of 2024, it's a great moment to revisit the performance of the "Magnificent Seven" tech giants.
• Tesla has struggled, with its stock down over 28% YTD, but recent technical trends suggest a potential turnaround.
• Nvidia continues to impress and outperform ahead of its upcoming earnings, with the stock up over 86% YTD.

As we approach the midpoint of 2024, it's an opportune moment to revisit the performance of the "Magnificent Seven" tech giants and their evolving market narratives. 

The group has experienced notable shifts since the beginning of the year, warranting a fresh look at their standings and potential attractiveness as an investment or even presenting a good time to sell.

So, let's examine each of the magnificent seven, comparing their performance with the overall market to identify better what opportunities might lie ahead for them.

Alphabet, Inc.

Alphabet NASDAQ: GOOGL has shown impressive performance in 2024, with its stock up 26.04% year-to-date. This strong performance comes after the company posted its earnings results on April 25, 2024. Alphabet reported earnings per share (EPS) of $1.89 for the quarter, surpassing analysts' consensus estimates of $1.49 by $0.40. 

Analysts maintain a bullish outlook on Alphabet, with a moderate buy rating and a price target forecasting over 8% upside. Notably, Alphabet announced its first-ever dividend in its latest earnings report, marking a significant milestone for the company. Additionally, Alphabet is one of the most upgraded stocks, reflecting positive sentiment from the analyst community.

Tesla, Inc.

Tesla NASDAQ: TSLA has faced several challenges this year and continues to be among the worst performers in the S&P 500, down over 28% year-to-date. While sentiment has been bearish, the stock recently broke its downtrend and is consolidating above its rising and converging 20 and 50-day simple moving averages (SMA). This pattern indicates a potential shift in momentum​ and, from a technical analysis perspective, a potentially favorable time to buy the stock.

Apple, Inc.

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