Earnings Preview for Tech Giants: Performance Analysis from Deutsche Bank
Deutsche Bank’s recent chart highlights the performance of the ‘Magnificent 7’ tech stocks in the US equity market ahead of their upcoming earnings updates. The data indicate that all seven Wall Street giants have fallen below their 2024 peaks, with six of them at least 7% below their year-to-date highs.
Among these stocks, Nvidia stands out as the 2024 leader with a nearly 54% YTD gain. However, its shares have retreated almost 20% from their highest point. Meta and Alphabet have also recorded gains this year, exceeding 30% and 10% respectively. Nevertheless, the recent market decline has pushed their shares down from their peaks as well.
Tesla has faced significant challenges throughout the year, becoming the second-worst performer in the S&P 500 after losing half its value since last July, according to Deutsche Bank strategist Jim Reid.
The ‘Mag 7’ earnings reports come at a time when the broader equity markets are experiencing losses in April. The Nasdaq Composite and the S&P 500 have declined primarily due to concerns about reduced prospects for multiple interest rate cuts this year.
