The Magnificent Seven Stocks
Amazon.com (AMZN), Apple (AAPL), Google parent Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) generally paused or retreated last week, while small caps and sectors such as industrials, construction, financials, and travel experienced gains.
Despite the slowdown, a constructively focused perspective might reveal that the Magnificent Seven stocks saw significant gains in November, indicating the potential for prospective entries to become even more attractive in the future.
Microsoft and Amazon stocks have fallen below buy zones, while Nvidia and Meta stocks are distancing themselves from buy points. Apple stock is hovering near a buy point, with Tesla stock testing key support and Google technically still presenting a handle buy point.
The focal point lies on Nvidia and Microsoft being leaders in the AI boom, with Meta, Google, and Amazon also making their own AI advancements. Meanwhile, Tesla claims its position as a major AI contender, and although Apple hasn’t emphasized AI, CEO Tim Cook has noted significant investments in this area.
While the Magnificent Seven stocks might be in or near buy zones, investors may want to consider diversifying away from megacaps, with Amazon, Microsoft, Nvidia, and Meta Platforms featured on IBD Leaderboard, Microsoft stock on the IBD Long-Term Leaders list, Nvidia stock, Meta, and Microsoft on the IBD 50, and Microsoft stock on the IBD Big Cap 20.
Microsoft stock reached a record high on Wednesday but then dropped. Amazon stock saw a sixth consecutive weekly gain, while Nvidia stock tested the 50-day line. Meta stock fell almost 3% on Monday, with Apple also falling, albeit slightly. Tesla stock emerged as the only one within the Magnificent Seven to outperform the S&P 500 last week.
Google stock experienced a sharp decline on Monday, slipping below the 50-day line, with further details provided by IBD experts for stock market updates and more.