After Tesla's stock slide, Magnificent Seven face tests to keep market’s throne

New York: Tech behemoths will face their next test to keep the market’s throne this week, after a bleak quarter from Tesla sent its stock sliding, media reported

Tesla shares have tumbled more than 26% so far in 2024 after the electric-vehicle maker reported a fourth-quarter operating margin that has almost halved to 8.2 per cent from the year-earlier period. Tesla also warned that it expects slower sales growth this year, CNN reported.

That comes as the rest of the “Magnificent Seven” -- Nvidia, Microsoft, Meta Platforms, Amazon, Apple and Alphabet -- continue climbing higher. Nvidia, Microsoft, Meta Platforms and Alphabet shares closed at record levels several times last week, CNN reported.

Now, they face their own tests. Microsoft and Alphabet report earnings on Tuesday, with Amazon, Meta Platforms and Apple to follow on Thursday. Nvidia reports quarterly results on February 21.

Excluding Tesla, the Magnificent Seven is projected to report an aggregate 53.7% fourth-quarter earnings growth from the prior year, according to FactSet. Companies in the S&P 500 index are expected to report a 10.5% earnings decline minus those six firms.

The Magnificent Seven’s quarterly results will be some of the most-watched this earnings season, due to the outsized influence the group has had over the broader market since last year, CNN reported.

The returns in the Magnificent Seven drove about 62% of the benchmark index’s 26% total return last year, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, CNN reported.