Tech giants are facing a critical test to maintain their dominance in the market, particularly after a challenging quarter for Tesla led to a significant decline in its stock. Tesla shares have dropped more than 26% in 2024, triggered by a fourth-quarter operating margin that nearly halved to 8.2% from the previous year and a cautious sales growth outlook for the current year.
In contrast, the other members of the "Magnificent Seven" – Nvidia, Microsoft, Meta Platforms, Amazon, Apple, and Alphabet – have seen their stocks climb higher. Several of these companies, including Nvidia, Microsoft, Meta Platforms, and Alphabet, reached record levels in the past week.
The upcoming earnings reports from Microsoft and Alphabet on Tuesday, followed by Amazon, Meta Platforms, and Apple on Thursday, along with Nvidia's results on February 21, will be closely watched. Excluding Tesla, the Magnificent Seven is expected to report an aggregate 53.7% growth in fourth-quarter earnings compared to the previous year, contrasting with the 10.5% earnings decline projected for S&P 500 companies excluding these six firms.
The performance of the Magnificent Seven carries substantial weight in the broader market, having driven a significant portion of the benchmark index's total return last year. These tech giants' influence is crucial, and their quarterly results will likely shape market sentiment and expectations for the upcoming period.
(With Agency Inputs)
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