Call it the Unflattering Seven.
Long known as the “Magnificent Seven” stocks, Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Google (GOOG, GOOGL) shares are acting anything but, especially compared to their 52-week highs.
Meta and Alphabet are effectively in bear markets, down more than 20% from their 52-week highs, as the Yahoo Finance AlphaSpace graphic below shows. Tesla is off by 19.2%, Amazon by 15.1%, and AI chip darling Nvidia by 12.2%.
Meta, Alphabet, Amazon, and Tesla have been crushed following earnings reports that showed pressured free cash flow amid aggressive AI spending. Nvidia is down due to fears that all these hyperscalers are overspending and will be forced to pull back in 2027.
Apple and Microsoft are the only Magnificent Seven names hanging tough, for company-specific reasons.
Microsoft managed to show positive free cash flow this week alongside strong Azure sales growth. Apple isn’t being viewed as an AI play, but more as a cash-rich play rolling out new hardware in the iPhone and Mac realms.
“There is too much weakness in tech for the market to ignore,” BTIG strategist Jonathan Krinsky said.
Too much weakness in seven of the world’s most important stocks for the market to ignore is more like it.
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Source: finance.yahoo.com
