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.

Although 15.7% off its 52-week low, Apple NASDAQ: AAPL continues to lag behind the overall market and sector, with its stock down over 1% year-to-date; Apple last issued its quarterly earnings on May 2, 2024. The iPhone maker reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.02. However, revenue was down 4.3% compared to last year's quarter.

Analysts are bullish on the stock, giving it a moderate buy rating. The stock has notably broken its downtrend, reclaiming all major moving averages. This significant trend shift might signal that buyers will support pullbacks as they look to enter or add to a position now that the stock has reversed off the lows.

Nvidia, Inc.

With earnings for Nvidia NASDAQ: NVDA set for Wednesday, May 22, the stock stands as an outperformer, surging over 86% YTD and surpassing the market and its sector. Analysts continue to display bullish sentiment, rating it a moderate buy, and anticipate a nearly 5% upward potential based on a consensus price target. Notably, Wells Fargo has raised its target from $970 to $1,150, projecting a remarkable 30% upside as of the report date.

Meta Platforms, Inc.

Despite a solid year-to-date performance, Meta Platforms NASDAQ: META has faced challenges post-earnings, experiencing an 11% dip from its 52-week high. To inspire confidence among bulls and potentially signal a buying opportunity, the stock must reclaim its downward-trending 50-day SMA. Analysts maintain a favorable outlook, with a moderate buy rating and a consensus price target predicting over 8% upside.

Amazon.com 

  With an impressive increase of just over 21% and maintaining a sturdy uptrend, Amazon NASDAQ: AMZN consolidates within a narrow range, suggesting a potential momentum breakout chance for short-term traders. In its latest earnings report on April 30, 2024, the e-commerce powerhouse exceeded expectations, reporting $0.98 EPS for the quarter, surpassing analysts' consensus estimates by $0.15.

Microsoft, Inc.

Microsoft NASDAQ: MSFT, the world's largest company with a market cap of $3.12 trillion, has seen a robust 11.75% year-to-date increase. With projected earnings growth of 11.98% and a dividend yield of 0.71%, the company is consolidating above all key moving averages, sitting just 2.46% shy of its all-time high. A break above its recent three-day consolidation could trigger a momentum-driven opportunity for further ascent as the stock gathers momentum above its rising 50 and 20-day SMA.