Throughout 2023, the “Magnificent Seven” stocks, which include Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla, exhibited notable gains. These stocks are considered some of the best in the current stock market due to their substantial market capitalizations, exerting a significant influence on the Nasdaq composite and S&P 500 indexes.
Nvidia stood out as the top performer among the Magnificent Seven, delivering an exceptional year-to-date return of 235% by December 15, 2023. The company’s stock demonstrated strength by remaining above a double-bottom buy point and extending beyond a new flat base’s buy point. Nvidia’s strategic focus on artificial intelligence (AI) and generative applications, exemplified by NeMo Retriever, contributed significantly to its robust performance.
Amazon, another key player in the Magnificent Seven, maintained a strong position above a cup base’s buy point, showcasing resilience despite a slight decline in its shares. Amazon’s innovative Amazon Bedrock platform, offering managed services with high-performing foundation models from various AI companies, played a crucial role in sustaining its market presence.
Alphabet, the parent company of Google, faced a 1.2% fall but remained above a buy point. However, Google’s introduction of the Gemini AI model came under scrutiny after a demo video was found to be edited, highlighting potential challenges for the tech giant.
In contrast, Tesla encountered challenges as its stock dropped by 2.5%, falling below key support levels. Despite exceeding Wall Street predictions for fourth-quarter deliveries, Tesla’s stock struggled, emphasizing the complexities within the electric vehicle market.
Within the Dow Jones stocks among the Magnificent Seven, Apple and Microsoft exhibited diverse movements. Apple experienced a 1% decline, trading below a cup-with-handle entry point. On the other hand, Microsoft regained its cup-base buy point and lost 0.4%. Both companies received positive reports from Wall Street analysts in recent weeks.
Meta Platforms, the parent company of Facebook, achieved new highs following a robust rebound from its 50-day line. Despite a 0.7% dip, Meta stock maintained a stellar 98 out of 99 IBD Composite Rating, indicating its robust performance in the market.
These detailed movements of the Magnificent Seven stocks provide valuable insights into the dynamics of the stock market, as their performances significantly influence broader market indices and offer a glimpse into overall market sentiment.