Short sellers have made big profits so far in 2025 as some of the market’s biggest stocks have dropped. According to S3 Partners, betting against Tesla (TSLA) and Nvidia (NVDA) has earned short sellers $15 billion so far this year. Tesla short sellers alone made nearly $11 billion, as the stock has fallen 40% since January. Indeed, investors are worried that CEO Elon Musk is too focused on government work with the Trump administration, which could hurt Tesla’s brand and sales.
Other major tech stocks are also struggling. In fact, the “Magnificent Seven” group, which includes Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), and Meta (META), is falling behind the S&P 500 (SPX) more than it has since 2022. In addition, short sellers have gained nearly $5 billion betting against Apple, which has seen its stock fall 14% this year. Investors are becoming more cautious as concerns about a slowing economy and the impact of Trump’s new tariffs continue to grow.
Tech companies are also facing criticism for spending heavily on AI, with some doubting whether those investments will actually pay off. Some stocks, including Nvidia, saw major drops after China’s DeepSeek released a cheaper AI model. Many of these stocks are now 20% below their recent highs, and investors are wondering if the excitement around them will return. Despite the sell-off, BMO Capital Markets strategist Brian Belski believes that these companies are still key players in the U.S. stock market and will remain important for long-term growth.
Which Magnificent Seven Stock Is the Better Buy?
Turning to Wall Street, out of the magnificent stocks mentioned above, analysts think that NVDA stock has the most room to run. In fact, NVDA’s average price target of $176.81 per share implies more than 48% upside potential. On the other hand, analysts expect the least from AAPL stock, as its average price target of $249.88 equates to a gain of 17%.
Questions or Comments about the article? Write to editor@tipranks.com