Tesla (TSLA) was the first member of the Magnificent Seven to report earnings this season, posting mixed results that has sent the stock ripping and roaring by nearly 20% higher. How should investors be looking at the broader tech trade coming off of Tesla's results?

"In the short to medium term, though, it is a trade play. And I think if [Tesla stock] approaches and closes high above a $260, $265 level, I think you buy it because I think it's going all the way to $300," EquitySet CEO Tony Zipparro tells Wealth's Alexandra Canal. "However, if it kind of stops right, pauses, I think it's going all the way down to $200."

Expanding the conversation to rest of the Magnificent Seven, Zipparro views declining revenue and deteriorating consumer fundamentals as the biggest risks for names like Microsoft (MSFT) and Meta Platforms (META).

Zipparro elaborates on trends in investors rotating out of Big Tech and how investors can remain defensive around volatility fueled by the 2024 election.

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This post was written by Luke Carberry Mogan.