The Magnificent Seven created $20.6 trillion in shareholder value over the past decade, according to Morningstar.
Record market-cap moves for the tech giants end in a 1% Nasdaq gain.
Tech stocks have been on a roller coaster this week. First, it was Microsoft and Meta, whose stock prices surged and plunged, respectively, after the companies announced their most recent quarterly results.
U.S. stocks settled higher as Amazon kept the artificial-intelligence recovery rolling.
Plus, Tesla considers sale of China business and Anthropic discloses that its software hacked three companies.
Apple has found itself dealing with component shortages exacerbated by the AI boom, and the company is scrambling for solutions.
The iPhone maker warned that supply constraints and slowing growth would weigh on results in the current quarter.
Apple beat on the top and bottom lines and still sold off over 8%. I'm at a 'Hold,' and I expect it to underperform the market through year-end. Revenue hit a Q3 record of $109.4 billion, up 16.4%, with iPhone up 21.7%. The market decided 38x forward earnings already priced all of it in. Strip out tariff refunds, and 200bp of that 50.1% gross margin disappears. Memory costs are doing the damage, and Apple cannot solve a memory shortage.
As the Magnificent Seven stocks report earnings, the results have been broadly strong, but Microsoft, Amazon and Meta Platforms really stand out.
Apple Inc (NASDAQ:AAPL, XETRA:APC) shares fell nearly 10% following its latest earnings report as analysts highlighted supply constraints, rising memory costs and a more challenging margin outlook heading into fiscal 2027. UBS wrote that Apple delivered an “in-line quarter” with solid iPhone demand but weaker-than-expected Services growth.
AAPL's fiscal Q3 earnings beat estimates as record iPhone, Mac and Services revenues fuel 16.4% sales growth despite looming supply and memory pressures.
Apple and Amazon are both being hurt by higher memory prices.