The third-quarter earnings season is in full swing, with the ‘Magnificent 7’ tech giants taking center stage. Tesla leads the pack, reporting today, followed by Alphabet, Microsoft, Meta, Apple, and Amazon in the coming days. Despite recent market volatility, these companies are poised for strong growth, fueled by AI advancements, cloud computing, and robust user engagement. This article delves into each company’s expected performance and highlights key areas of interest for investors.
CNBC’s Jim Cramer has expressed concerns about Apple’s valuation, calling it the most vulnerable among the ‘Magnificent 7’ tech giants. He believes the stock’s recent sell-offs haven’t been enough to justify its price, especially considering the upcoming iPhone 16 launch. While the event is highly anticipated, Cramer remains cautious about the stock’s performance, citing increased competition and mixed opinions from analysts.
SK hynix, the South Korean memory giant, is working on a new generation of high-bandwidth memory (HBM) that promises a 20-30x performance leap compared to current models. This development is being driven by the surging demand for AI hardware, particularly from major tech companies like Apple, Google, and Amazon, known collectively as the “Magnificent 7.” SK hynix aims to provide custom HBM solutions to meet the specific needs of these companies, emphasizing the importance of creating its own specifications rather than solely following market trends.
Wall Street’s mood turned cautious on Tuesday as investors braced for earnings reports from seven major companies that have driven much of the market’s gains this year. The so-called ‘Magnificent 7’ includes Tesla, which reported after the bell. Positive earnings and optimistic commentary from these companies could buoy the market, while weak results or a negative outlook could spark further declines. Despite a positive start to the trading week Monday, stocks ended off their highs as focus shifted to the upcoming earnings reports.
Ahead of their upcoming earnings reports, Deutsche Bank’s chart reveals that all seven ‘Magnificent 7’ tech stocks are below their 2024 highs, despite most remaining positive year-to-date. Nvidia leads the way with a 54% YTD gain but has dipped nearly 20% from its peak. Meta and Alphabet have also seen gains this year, while Tesla remains the worst performer in the S&P 500 since July 2023.
