The Magnificent 7

The third-quarter US earnings season is in full swing, and the market is closely watching the performance of the Magnificent 7 US stocks: Nvidia, Tesla, Meta (Facebook), Apple, Amazon, Microsoft, and Alphabet (Google). These stocks have been driving the market higher this year, but also contributed to its recent pullback. How did they fare in the last quarter? Here are some highlights:

Nvidia: The chipmaker is expected to report strong growth in its artificial intelligence business on November 21. The stock could be volatile depending on the results.

Tesla: The electric car maker missed expectations, as price cuts hurt its revenue and margins. The company also faced higher costs to ramp up its Cybertruck production, which is expected to improve in the long term.

Meta: The social media giant beat consensus, as it showed strength in user growth, engagement, and monetization. The company also improved its data analytics and campaign planning tools using #artificialintelligence.

Apple: The iPhone maker reported solid results, but the market was not satisfied with its outlook. The company faced supply chain challenges and slower growth in China, which may weigh on its future performance.

Amazon: The e-commerce leader reported better-than-expected results, especially in its online retail and advertising segments. The company also invested heavily in its logistics and delivery capabilities to meet the growing demand.

Microsoft: The software giant exceeded expectations, as it showed strength in all segments, especially its cloud computing and gaming businesses. The company also maintained its high margins and cashflow generation.

Alphabet: The search engine leader beat consensus, but the stock traded down on concerns that its cloud business is losing market share to Microsoft. The company also faced regulatory scrutiny and antitrust lawsuits in several markets.

The Magnificent Seven US stocks are still among the most influential and innovative companies in the world, but they also face various challenges and uncertainties. Investors should be mindful of their valuations and risks, and diversify their portfolios with other high-quality stocks.

Which of The Magnificent Seven do you feel have the brightest future?

The details provided is for information purposes only and does not constitute advice to buy stocks and shares and should not be regarded as financial advice. With investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest