While the stock market continues to inch towards ever-new highs, the Magnificent Seven club, which includes Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta (NASDAQ:META), Amazon (NASDAQ:AMZN), NVIDIA (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), is showing cracks.
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The Stumbling Three…
In recent times, the trio of Apple, Tesla, and Google seem to be taking a stumble. The S&P 500 (SPX) and the tech-heavy NASDAQ (NDX) are up by around 9%-10% so far this year. In comparison, Apple and Tesla have each fallen by approximately 11% and 29%, respectively, during this period. Google corrected from around $155 at the end of January to nearly $132 in early March. Renewed buying interest, however, has helped the stock climb back to the current $152 level. It is still up by a meager 8% so far this year.
…Make It More of a Fab Four
The other four Magnificent Seven club members, in contrast, are seeing continued positive momentum. Current Street darling NVIDIA is leading this charge with a nearly 82.5% year-to-date rally. Meta continues to lead the social media landscape with a jump of 37.2% during this period. The diverging trajectories are prompting some quarters of the market to wonder if it is just the Fab Four now?
Buzzing Investor Sentiment
The dynamic indicates that investors have begun to lap up other names and sectors in the market as well. For much of the past months, the gains in indices were largely driven by jumps in the Magnificent Seven. However, the optimism over AI, potential multiple rate cuts this year, and fading recession worries are keeping investor sentiment buoyant.
Is Apple Stock Expected to Rise?
The Fab Four have contributed to a significant chunk of the gains in indices this year. However, the TipRanks Comparison Tool indicates that Apple could still outperform its Magnificent Seven club peers over the comping periods with a potential upside of 18.6%. Apple is largely expected to unveil its AI strategy at its upcoming Worldwide Developers Conference in June – a key event to keep an eye on for the stock.
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