Magnificent 7 Stocks – Are they still magnificent?

We're taking a look at the Magnificent 7 stocks to see if they are still magnificent and if it's time to buy or let these stocks fly by and move on to something else.

Let's start with Amazon, a giant in the e-commerce world. Amazon experienced a significant fall from its high of $200 down to just shy of $150, marking a 25% discount. However, following this dip, we advised our members in Power Trades University to view it as an opportunity. The stock did get a bounce, reversing about $24 off the bottom. Despite this recovery, it hasn’t picked up significant momentum. Amazon's high-frequency trading opportunities may be temporarily pause, but for those who got in at the earlier pullback, it continues to look promising.

Next up is Tesla, which has been anything but magnificent over the past two years. This stock has seen a consistent downtrend since 2022. The issue with investing in a downtrend is the risk of further losses if the stock doesn’t rebound to your buying level. While there have been chances to make money on some pullbacks, Tesla's inconsistency makes it a challenging short-to-medium term trade. For long-term believers, there might be an eventual payoff, especially if market conditions favor an upward swing.

Microsoft stands as a pillar in the tech world. The stock rallied 25 points from a $400 support level, showing a 5% return off the bottom. This may not sound overly impressive, but it’s steady. However, we find ourselves at a point of resistance now. Whether it breaks through or rolls back depends heavily on external factors like Federal Reserve announcements. Despite being a consistent performer, Microsoft's recent activity makes it less enticing for aggressive traders.

Google is another heavyweight, but like its peers, it has seen its struggles. The stock experienced a big pullback before gapping up on earnings and then settling into a possible w pattern. Although, due to declining volume, Google's fundamental strengths remain intact. With an election year, platforms like Google and YouTube stand to benefit from increased ad spending, potentially putting its stock towards a $190 target. Here, patience may well pay off.

Nvidia is the name that genuinely upholds the "Magnificent" tag. The stock has surged over 200% this year alone and appears to be closing in on its all-time high. Even after the market sell-off, Nvidia has shown a recovery. Earnings reports could be a wild card, potentially swinging the stock either way in the short term. However, with long-term prospects looking bright, Nvidia appears to be the jewel in the crown of the magnificent seven.

Meta, like Nvidia, has also rebounded significantly from previous lows, touching its 52-week high recently. However, the stock currently sits at a resistance level, making it risky for new entrants. Those who seized the opportunity at the $450 level can sit pretty, but caution is advised for now.

Lastly, we have Apple, with a compelling run from $200 to $226—a decent 10%-12% increase. But like Microsoft, Apple faces resistance, and declining volumes raise questions about its immediate future. Market sentiment and earnings will likely determine its next move.

In conclusion, the Magnificent 7 stocks aren't uniformly magnificent right now. While some, like Nvidia, continue to shine, others such as Tesla and Microsoft are facing hurdles that make them less appealing in the short term. However, each presents unique opportunities and challenges—making them worth the watch.

As always, I encourage you to do your homework, follow the trends, and make informed decisions. Let’s continue the conversation in the comments below. Are you trading any of the Magnificent 7 stocks? Let me know your thoughts.

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[00:01:26] Amazon

[00:01:27] Tesla

[00:02:56] Microsoft

[00:04:49] Google

[00:05:53] Nvidia

[00:06:46] Meta

[00:08:19] Apple