Divergent fortunes for the Mag Seven

Five charts to start your day

Good morning – here are your five chart for the day.

CHART 1 • Magnificent Seven share performance this year

Meta is soaring while Tesla crashes in a tale of two tech titans. Meta Platforms traded to an all-time high on January 27, becoming the undisputed leader of the Magnificent Seven with a remarkable surge past 20% year-to-date. Meanwhile, Tesla has plummeted 38.1%, dragging down the group's overall performance.

The mighty tech giants that dominated markets for two years are finally showing cracks. Six of the seven Magnificent Seven stocks are down between 7 and 15 percent to start 2025, a stark reversal from their explosive 2023-24 run. The group's market capitalisation has already shed hundreds of billions, with Microsoft and NVIDIA both falling below $3 trillion in market cap. Yet despite the turbulence, earnings expectations remain robust – the Magnificent Seven are expected to post 18.0% growth versus 10.8% for the S&P 493 in 2025. This disconnect between stock performance and fundamental growth suggests either a healthy correction or the beginning of a more significant shift in market leadership.

Source: Wall Street Journal

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