The “Magnificent Seven” were at the forefront of 2023’s market rally, but the same leaderboard has done some shifting to start 2024. After an earnings miss, the stock of Tesla faltered, while peers like Microsoft and Apple continue to see higher heights, reaching the $3 trillion club.
Slowing growth of electric car sales put a dent in Tesla’s market cap recently. Growth prospects appear bleak after the electric automaker predicted a 50% annual growth rate that turned out to be 12% lower than anticipated.
“As someone who was among the first to vocalize the Magnificent Seven rubric, I officially acknowledge now that there are only six left,” said CNBC’s Jim Cramer.
Cramer was more upbeat for the prospects of Tesla’s “Magnificent Seven” peers, particularly names like Microsoft and Apple. Big tech’s dominance could continue to spill over into this year as the S&P 500 continues to climb to new highs. With the theme of artificial intelligence (AI) continuing to make headlines, Microsoft and Apple can stand to benefit as more consumers integrate AI into day-to-day activities.
As referenced in a Quartz report, Microsoft and Apple are in positive territory, while Tesla languishes. At the top of the heap since the end of last year is Nvidia, which, as mentioned, is benefiting from the ongoing strength of the AI theme.
Single-stock exchange-traded funds can allow traders to add leverage to their bullish notions. They can use “Magnificent Seven” names with funds like the Direxion Daily NVDA Bull 1.5X Shares (NVDU), the Direxion Daily MSFT Bull 1.5X Shares (MSFU), and the Direxion Daily AAPL Bull 1.5X (AAPU).