New York
In the ever-evolving landscape of the stock market, technology giants are poised for their next challenge following a turbulent quarter for Tesla that saw its shares take a considerable hit, as reported by the media. Tesla’s stock has plummeted by over 26% in 2024, a stark contrast to the upward trajectory experienced by its counterparts in the Magnificent Seven — Nvidia, Microsoft, Meta Platforms, Amazon, Apple, and Alphabet. The electric vehicle pioneer reported a fourth-quarter operating margin that nearly halved to 8.2%, compared to the same period the previous year. Adding to the concerns, Tesla cautioned investors about an anticipated slowdown in sales growth for the upcoming year, according. This unexpected downturn for Tesla stands in stark contrast to the other tech giants, with Nvidia, Microsoft, Meta Platforms, and Alphabet shares reaching record levels multiple times in the past week. The upcoming week will be a pivotal moment for the tech behemoths, with Microsoft and Alphabet slated to report their earnings on Tuesday, followed by Amazon, Meta Platforms, and Apple on Thursday. Nvidia is set to release its quarterly results on February 21. Excluding Tesla from the equation, the Magnificent Seven is expected to report an impressive aggregate of 53.7% fourth-quarter earnings growth compared to the prior year, according to FactSet. In contrast, companies in the S&P 500 index are anticipated to report a 10.5% earnings decline when excluding these six firms. The performance of the Magnificent Seven holds substantial significance for the broader market, given their outsized influence since the previous year. According to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, the returns from these tech giants contributed to approximately 62% of the benchmark index’s total return of 26% in the previous year. As investors await the earnings reports, the market watches closely to gauge the resilience of these tech titans amid the evolving economic landscape.
