The Magnificent Seven stocks — Amazon.com (AMZN), Apple (AAPL), Google parent Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) are closing out a huge year, all easily beating the S&P 500 index.
Apple is known as the world’s most valuable company, but the multi-trillion-dollar tech behemoth is seeing slower growth. Apple stock has essentially only kept pace with the S&P 500 since August 2020, and the consumer electronics giant may no longer be the apple of investors’ eyes. Experts say there’s no growth story for Apple, and investors are looking for the next catalyst. So are the company’s glory days over?” vid-name=”Apple Stock Is Not The Money Tree It Once Was. What Will Make It Grow?” vid-cat=”Industry Insights” vid-date=”10/30/2023″ vid-date-tmsp=”1698669751″ vid-image=”https://www.investors.com/wp-content/uploads/2023/10/r9pm9WPQ-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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Nvidia stock and Meta Platforms are the S&P 500’s top performers in 2023, with Tesla and AMZN stock among the 20 best.
But these megacaps could be primed for further gains. Nvidia and Microsoft are the leaders of the AI boom, with Meta, Google and Amazon also making high-profile artificial intelligence moves. Even Tesla claims AI intentions. Apple has been relatively quiet about its AI future, but is “investing quite a bit,” according to CEO Tim Cook.
Google stock, Apple and Amazon are in buy areas. Microsoft stock and Nvidia have forged new shallow bases within prior buy zones. Tesla stock is hovering around early entries while Meta Platforms is slightly extended.
Tesla stock, Amazon, Microsoft, Nvidia and Meta Platforms are on IBD Leaderboard. Amazon stock and Meta are on SwingTrader. MSFT stock is on the IBD Long-Term Leaders list. Nvidia stock and Meta are on the IBD 50. Meta stock is on the IBD Big Cap 20.
Magnificent Seven Stock Performance
| Company | Ticker | Market cap, in trillions | 2023 gain |
|---|---|---|---|
| Apple | AAPL | $3.02 | 49.0% |
| Microsoft | MSFT | $2.79 | 56.5% |
| Alphabet | GOOGL | $1.76 | 58.9% |
| Amazon | AMZN | $1.59 | 82.6% |
| Nvidia | NVDA | $1.22 | 238.9% |
| Meta Platforms | META | $0.92 | 197.8% |
| Tesla | TSLA | $0.80 | 105.5% |
| S&P 500 | 24.6% |
S&P 500: Amazon Stock
Amazon stock ran up to start the year, consolidated for a few months and then broke out in May from a bottoming base that was mostly below the 200-day line. The e-commerce and cloud-computing giant ran to 145.86 on Sept. 14, then sold off until Oct. 26. That marked a bottom for the Nasdaq, in part because AMZN stock spiked higher on earnings the following session.
Shares traded around the 145.86 consolidation buy point from mid-November to mid-December, before moving to the top of the 5% buy zone. Investors could use 149.26 as a high-handle entry.
Amazon stock spiked 82.6% so far in 2023.
Amazon earnings surged 236% in Q3, with revenue growth picking up for a second straight quarter to 13%.
Apple Stock
Apple stock went on a huge run from early January to a record 198.23 on July 21. Shares consolidated for several months, before breaking out from a cup-with-handle base on Dec. 5. After hitting a record 199.62 on Dec. 14, shares have pulled back to around the 192.93 buy point and the 21-day line. While in a buy zone, investors might want to see some strength before taking a position.
AAPL stock jumped 49% in 2023 through Dec. 28.
Apple earnings grew 13% in the fiscal fourth quarter, the second straight quarters of acceleration. But revenue has fallen for four straight quarters vs. a year earlier.
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Google Stock
After an early sprint in 2023, Google stock consolidated and broke out from a cup-with-handle base in early April, though it didn’t decisively clear that area until early May. The search engine giant, with growing cloud-computing and AI ambitions, broke out from cup-with-handle bases in late July and late December, according to MarketSmith. Shares trading just above a 139.42 buy point.
GOOGL stock is up 58.9% through Dec. 28.
Google earnings have improved from -19% to -11%, to +17% and +42% in the past few quarters. Revenue growth has picked up for the past three quarters, to 11%.
Meta Stock
Meta stock actually bottomed in November 2022, and ran up to early February 2023. The Facebook and Instagram parent broke out of a flat base in March, then skyrocketed all the way to 326.20 on July 28. Meta Platforms then consolidated over several months, before finally moving out for good in December following a 50-day line test. Shares now extended from a 326.20 or 330.54 consolidation buy point. Investors could view 342.92 as an alternate entry.
Meta stock is up 197.8% so far in 2023.
Meta earnings and sales growth have accelerated for the past three quarters, with EPS up 168% in Q3 and revenue 23%.
Microsoft Stock
MSFT stock has traded tightly for the past six weeks, with that turning into a flat base as of Friday’s close, with a 384.30 buy point. The cloud-computing, AI and software giant has been hugging the 21-day line, trading in a buy zone from a cup base going back to late July. Microsoft stock surged from early January to early February, then broke out from a flat base in March, running until July.
MSFT stock soared 56.5% through Dec. 28.
Microsoft earnings and sales growth have accelerated for the past three quarters, with a 27% and 13% gains, respectively, in fiscal Q1 2024.
Nvidia Stock
Nvidia stock, like Meta, bottomed in October 2022. Shares blasted out of a cup base in late January. NVDA stock offered further entries in early and late May, before finally peaking at 502.66 on Aug. 24. Shares broke out of a double-bottom base on Nov. 10, reaching a record 505.48 on Nov. 17. Nvidia stock then pulled back to the 50-day line but soon recovered the 476.09 buy point. Shares have now forged a flat base with a 505.48 entry.
NVDA stock has exploded for a 238.9% gain as of Dec. 28.
Nvidia earnings have skyrocketed thanks to huge demand for AI chips, with massive 429% and 593% gains in the last two quarters. Revenue spiked 101% and 206%. The chip giant has announced powerful guidance for the past several quarters. U.S. export curbs on AI chips to China are a headwind for Nvidia. So are competing AI chips from AMD and Intel, as well as in-house chips from Microsoft and other big buyers.
Tesla’s EV Business Faces 2024 ‘Challenges.’ That Might Not Stop TSLA Stock.
S&P 500: Tesla Stock
Tesla stock hit a two-year low intraday on Jan. 6 as the EV giant announced big price cuts. But shares reversed higher that day, which also marked a Nasdaq follow-through, and kept soaring. Shares ran up to mid-February, hitting resistance at the 200-day line. TSLA stock blasted out of that consolidation, decisively clearing the 200-day in early June. Shares hit a 2023 high of 299.29. But they tumbled on Q2 and Q3 earnings results, finally bottoming at 194.07 on Oct. 31. Tesla stock has rebounded, and is trading around a 259.84 early entry. It has a 278.98 buy point from an ugly double-bottom base.
Tesla stock has spiked 105.5% so far this year.
Tesla earnings have struggled in 2023, tumbling 37% in Q3 to their worst level in more than two years. Ongoing price cuts have boosted vehicle deliveries, but at the expense of once-mighty margins.
Tesla will report Q4 and full-year deliveries on or around Jan. 2, 2024. Analysts expect deliveries to come in right around the EV giant’s target of 1.8 million.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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