Amazon and Alphabet Stand Alone in Bull Market Among 'Magnificent Seven' Tech Stocks
Recently, the technology stocks that make up the so-called "Magnificent Seven" have been appearing less than magnificent.
$Meta Platforms(META.US$ saw a decline on Thursday that pushed its shares down by at least 10% from their recent peaks, thereby marking the company's entrance into correction territory. This move follows similar corrections in other tech giants such as $Apple(AAPL.US$, $Microsoft(MSFT.US$ and $NVIDIA(NVDA.US$. Meanwhile, $Tesla(TSLA.US$'s shares have fallen by over 20% from their recent peak, driving the stock into bear market territory.
Matt Stucky, senior portfolio manager for equities at Northwestern Mutual Wealth Management, suggests that as the overall market experiences a pullback, some of the top-performing stocks tend to undergo more aggressive mean-reversion. The fluctuations of the market are a natural occurrence when sentiment is heightened, as it was during July.
Nonetheless, varying opinions among analysts exist. According to CFRA chief investment strategist Sam Stovall, "There's so much uncertainty as it relates to interest rates with yields on the 10-year treasury continually climbing. Investors are saying it's time to take profits, and the greatest profits were seen in tech." There could be more room to fall for tech stocks on the whole.
Source: Marketwatch
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RAF Trader 108 : I am watching the market , still no sure if the mag 7 will aggressively return to its mean next week. I see googl and amzn are the only two of the mag 7 can reverse to mean! So I am long on both. I did miss SMCI was not able - hence exit at a loss ! Have a great weekend all momoo members ! That’s trading !!