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You may have heard of the Magnificent Seven, now get ready for China's Terrific Ten — the group of tech stocks comprised of Alibaba (BABA, 9988.HK), Tencent (0700.HK, TCEHY), Meituan (3690.HK, MPNGY), Xiaomi (1810.HK, XIACY), BYD (BYDDY, 1211.HK), NetEase (NTES, 9999.HK), Geely (0175.HK, GELYF), JD.com (JD, 9618.HK), Baidu (BIDU, 9888.HK), and Semiconductor Manufacturing International Corporation (0981.HK).,
Yahoo Finance host Julie Hyman compares the performance between the Terrific Ten and the Magnificent Seven — which is made up of Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) — amid recent tech sector sell-offs.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
This post was written by Luke Carberry Mogan.
Look at magnificent seven. Investors are looking overseas to China's terrific ten for gains. Now our finance is Julie Hyman joins now with a closer look in our chart of the day.
Yeah, we have definitely seen some of these Chinese big tech stocks outperform. This was pointed out in a tweet today and we took this chart and basically, you see the terrific 10, which is some of dubbed some of those large cap Chinese tech companies up this year by nearly 40%, even as we've seen the magnificent seven and green here slump a little bit, the S&P 500 and the QQQs. That's the ETF that tracks the Nasdaq 100. I've also kind of flat lined here as we have seen this. It's not necessarily what you would expect in this sort of tariff and trade war environment. We talked earlier to Brandon Ahearn of Crane shares his Kweb ETF. The Crane shares runs has done quite well also and he talked about that.
But I really go back to January of 2024, and that's when the last China bull was slaughtered as you had this derivative induced meltdown in both China and Hong Kong. And since January of 2024, Kweb is up over 60%. It's actually up more than double both the S&P 500 and Nasdaq 100, but it's so out of sight, out of mind for most investors. I don't think they recognize that.
Well, now this index and others like it are getting more attention and these collections of stocks, people are looking to Europe, people are looking to China. Now, as for the terrific 10, what goes into the terrific 10. Here's a list or and it's probably fluid to some extent. Alibaba, Tencent, Meituan, Xiaomi, BYD, JD, Netease, Baidu, Gili and Smec all on in that terrific 10, if you will, or tremendous 10, whatever you want to call it. When we talked to A, he attributed the gains to a couple of things. He said, first of all, China is in a stimulative environment and cycle right now. Now, that stimulus at various times that the government has offered has been disappointing to investors. They have wanted more, but some investors think they've now finally gotten to that critical mass or amount of stimulus coming into the market. The other thing that Brandon talked about that was quite interesting was that Deep Seek was really a milestone for China and evidence that there could be that AI, that homegrown AI innovation without a reliance on the US. Although, as we know, there are some questions about how many US advanced chips were perhaps used to fuel the Deep Seek model. Nonetheless, the numbers tell the story, Josh, and they're up.
Sure do.
Thank you, Julie.
