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Two Magnificent 7 companies are due to report this week, kicking off this earnings season's set of results for this group.
Electric vehicle maker Tesla (TSLA) is set to release first quarter earnings after the bell on Tuesday, while Google-parent Alphabet (GOOG) is slated to publish its results on Thursday.
The Mag 7 — also comprised of Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Meta (META) and Amazon (AMZN) — are all in the red year-to-date.
In January, the release of a lower-cost artificial intelligence (AI) model by Chinese start-up DeepSeek rattled investors in the Mag 7, as it prompted concerns over the level of spending by major tech companies on AI.
High expectations going into the first earnings season of 2025 also saw share price falls after this group of companies reported in January and February.
Read more: Stocks to watch this week: Tesla, Alphabet, Intel, Boeing and Unilever
Since then, broader market volatility on the back of US president Donald Trump's fast-moving tariff agenda has weighed on the Mag 7, amid concerns that this will tip the US into recession.
AJ Bell's (AJB.L) investment experts Russ Mould, Danni Hewson and Dan Coatsworth said in comment published on Thursday that the Mag 7 have lost nearly $4tn (£3tn) of stock market capitalisation between them since their aggregate valuation hit $18.4tn on 24 December, which represents a drop of one-fifth.
"That still means their combined worth is 5% above where it was a year ago, so it is too early to talk about a real loss of faith in them — even if gold is up by a third in the past 12 months, to hint at some kind of change in the market’s mood," they said.
"Any shift in sentiment toward this septet could have wide-ranging implications, though, given how they still represent almost one third of the total stock market valuation of the S&P 500 (^GSPC) index."
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