In recent tech earnings, the focus has been on the so-called 'Magnificent Seven': Amazon (AMZN), Apple (AAPL), Alphabet (GOOG, GOOGL), NVIDIA (NVDA), Meta (META), Microsoft (MSFT), and Tesla (TSLA). However, analyst David Bahnsen argues that the 'Mag 7' is over and no longer exists as a monolithic group. He points to recent volatility in tech stocks, such as Facebook being ripped apart while Google rallied, as evidence of this shift. With many investors relying on high valuations, Bahnsen warns against basing decisions solely on these figures, which can be disconnected from reality.
This week sees a slew of earnings releases for major tech companies including Amazon, Apple, Alphabet, NVIDIA, Meta, Microsoft and Tesla. It is also worth keeping an eye on energy stocks as the dynamics within the tech sector change. With high valuations proving volatile and unreliable in gauging market performance, investors should be cautious of relying solely on these figures when making investment decisions.
In addition to the major tech companies releasing their earnings reports, there is also anticipation for earnings from other big names such as LLY, KO, AMD, MCD and SBUX among others. As always with the stock market, it pays to stay informed and keep an eye on all relevant developments.
