Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. The Magnificent Seven stocks are among the best stocks to buy and watch in the stock market today.
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Due to their outsized market capitalizations, Magnificent Seven stocks hold a disproportionate influence on the market-cap weighted Nasdaq composite and S&P 500 indexes.
For an in-depth look at this issue, check out IBD’s page on the Magnificent Seven weightings, market capitalizations and the companies’ latest news stories.
Magnificent Seven Stocks Performance
| Company Name | Symbol | 2023 YTD Performance |
|---|---|---|
| Alphabet | (GOOGL) | +50% |
| Amazon | (AMZN) | +79% |
| Apple | (AAPL) | +52% |
| Meta Platforms | (META) | +178% |
| Microsoft | (MSFT) | +55% |
| Nvidia | (NVDA) | +235% |
| Tesla | (TSLA) | +106% |
Source: IBD Data As Of Dec. 15, 2023
Magnificent Seven Stocks: Amazon Jumps On Earnings
Amazon (AMZN) is sharply out of buy range above a cup base’s 145.86 buy point, as shares fell 0.2% Monday.
Last week, Amazon reported quarterly results, beating expectations for both earnings and revenue.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
Alphabet In Buy Range
Google parent Alphabet (GOOGL) is moving out of buy range above a 139.42 buy point in a cup with handle amid a recent rebound. Google stock fell 0.6% Monday.
On Jan. 30, Alphabet reported fourth-quarter earnings and revenue that topped analyst estimates. But shares tumbled as the search giant’s core advertising business slightly missed views.
Google debuted its Gemini AI model on Dec. 6. However, the demo video displaying the AI’s capabilities turned out to be edited, Bloomberg reported. Google admitted the demo was created using still image frames from the footage with additional prompts via text, as well as edited to make Gemini response times appear quicker.
Nvidia Stock Leads Magnificent Seven
Among the Magnificent Seven stocks, Nvidia (NVDA) was the top performer, with a scorching 235% year-to-date return through Dec. 15.
The AI giant is extended past a new flat base’s 505.48 buy point after a Jan. 8 breakout move. Nvidia stock rallied 0.6% Monday, hitting more record highs. NVDA is an IBD Leaderboard stock.
On Nov. 28, the company expanded its push into AI, unveiling business intelligence for chatbots, copilots and summarization tools with its enterprise-grade generative AI microservice.
NeMo Retriever — a new offering in the Nvidia NeMo family of frameworks and tools for generative AI models — helps organizations enhance their generative AI applications. NeMo Retriever helps generative AI applications provide more accurate responses through Nvidia-optimized algorithms.
Tesla Stock Rebounds
Tesla (TSLA) gained 0.1% Monday, rebounding from its lowest level since May 2023.
On Jan. 24, the electric-vehicle giant said that earnings fell 40% to 71 cents per share while revenue totaled $25.17 billion, up 3.5% vs. the year-ago period. Wall Street expected earnings of 73 cents a share on revenue of $25.62 billion. For 2023, Tesla earnings fell 23% to $3.12 a share while revenue increased 19% to $96.77 billion vs. estimates of $3.05 on sales of $97.5 billion.
Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Two Dow Jones names among the Magnificent Seven stocks, Apple (AAPL) and Microsoft (MSFT) traded lower in the stock market today.
Apple stock dropped 0.6% Monday. Shares are below their 50-day line as a new double-bottom base shows a 196.38 buy point.
In recent weeks, Apple beat Wall Street’s targets for its fiscal first quarter, thanks to iPhone 15 handset sales and services growth.
According to MacRumors and other outlets, Apple could have a generative AI feature — internally known as Apple GPT — available on the iPhone and iPad sometime late next year.
Meanwhile, Microsoft stock is out of buy range above a flat base’s 384.30 buy point. The stock fell 0.9% Monday, easing from last week’s new highs.
On Jan. 30, Microsoft beat Wall Street’s targets for its fiscal second quarter thanks to strong cloud computing business.
Meta Stock Surges On Earnings
Shares of Meta Platforms (META) continue to make new highs after a strong rebound from their 50-day line in recent weeks. Meta stock climbed 1.7% Monday.
Meta reported better-than-expected fourth-quarter earnings and announced plans for its first-ever dividend.
META stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
In recent months, Chief Executive Mark Zuckerberg said that Threads is now available to users in the European Union. The Facebook parent company launched Threads as a separate app in July. It is a competitor to the Elon Musk-owned X, formerly Twitter. The European rollout was reportedly delayed by regulatory uncertainty in the EU over the use of personal data on the app.
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