All Articles 
In one of our recent articles, we explored the differences between growth and value stocks. If you’ve decided to focus more on growth, you’ve come to the right place. If the stock market had a hall of fame, the Magnificent 7 stocks would definitely be in it.
As we move through 2024, the stock market has seen a mix of impressive growth and significant volatility. One day we’re celebrating new highs, and the next, we’re seeing sharp declines. Despite the ups and downs, some stocks continue to shine. The Magnificent 7 have been driving much of the market’s performance. In this article, we’ll break down their recent performance, compare them to other major stocks like FAANG and the Fab 5, and explain why these tech giants continue to lead in the growth sector.
Who are the Magnificent 7?
The Magnificent 7 are seven tech giants that have consistently delivered strong performance and proven their resilience. These stocks include:
- Apple (AAPL)
- Microsoft (MSFT)
- Amazon (AMZN)
- Alphabet (GOOGL)
- Meta Platforms (META)
- NVIDIA (NVDA)
- Tesla (TSLA)
Why Investors Prefer the Magnificent 7?
When the stock market gets unpredictable, like we’ve seen in recent times, investors turn to the Magnificent 7 as a reliable choice. These tech giants have proven their strength, breaking record highs even when the broader market is struggling. Think back to the Covid-19 era, when many of these companies thrived despite the chaos.
One key reason for this is their financial stability. With massive cash reserves and strong balance sheets, these companies are built to weather economic uncertainty. In an environment where interest rates are staying higher for longer, they’re in a prime position to keep growing, often faster than the rest of the market.
Beyond their financial strength, the Magnificent 7 have a significant impact on major indexes like the Nasdaq and S&P 500. Their dominance in the tech space means their performance can move the market, giving investors a sense of control. While companies like Tesla, Meta, and Nvidia may experience occasional dips, their continued growth potential, paired with their market influence, makes them a top pick for investors seeking both stability and upside.
If you’re looking to tap into the growth trend these giants are driving, start trading U.S. stocks on Morpher, all with zero commissions. Plus, with fractional investing, you don’t need to spend hundreds of dollars to own a piece of stocks like Tesla. You can start with as little as 1€ and still be part of the action.
Begin your journey with the Magnificent 7 today. Zero commission. Maximum growth.
Magnificent 7 Performance Report
In 2024, the Magnificent 7 stocks have shown impressive performance. Nvidia leads with a 177.3% YTD increase, contributing significantly to the overall performance of the group.
*All figures are based on EUR.
Magnificent 7 vs FAANG Stocks Performance
When compared to the FAANG stocks – Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet)– the Magnificent 7 still stands out, particularly with Nvidia’s extraordinary growth. While Netflix posted a 91.59% increase, the Magnificent 7 excels in AI and electric vehicles, sectors with high future growth potential.
Magnificent 7 vs Fab 5 Stocks Performance
The Fab 5 stocks – Amazon, Meta, Nvidia, Alphabet (Google), and Microsoft, exclude Apple and Tesla from the Magnificent 7. Excluding Apple (which had a 28.8% YTD increase) and Tesla (which had a 68.3% YTD increase) results in a Fab 5 with a more concentrated focus on cloud computing and digital services, helping the group achieve an average YTD growth rate of 72.64%.
The lists are essentially similar, with some variations based on industry focus. You can use these as inspiration to create your own stock baskets, and of course, you can give them a cool name like Fab 5 or Magnificent 7 too. The key is to analyze the data, pick the stocks with the highest growth potential, and create your own lists based on your strategy.
To help you get started, let’s break down all the stocks included in the Magnificent 7.
Apple Inc. (AAPL)
Apple continues to lead the tech industry with its diverse product ecosystem and services. As of December 19, 2024, Apple’s stock price is $249.56, reflecting a 0.61% increase from the previous close.
Strengths:
- Robust Ecosystem: Apple’s integrated devices and services foster customer loyalty and generate recurring revenue.
- Innovation: Continuous product development, including advancements in wearables and services, keeps Apple at the forefront of technology.
- Financial Health: Strong balance sheet with significant cash reserves and consistent revenue growth.
Risks:
- Supply Chain Vulnerabilities: Global supply chain disruptions can impact product availability.
- Market Saturation: High penetration in key markets necessitates innovation for sustained growth.
- Regulatory Challenges: Ongoing scrutiny over App Store practices and data privacy regulations.
2025 Forecast:
Analysts anticipate that Apple’s stock could reach $265 by the end of 2025, driven by AI-driven upgrades and continued innovation.
Microsoft Corporation (MSFT)
Microsoft has solidified its position in cloud computing and enterprise software. The stock is currently trading at $440.60, up 0.73% from the previous close.
Strengths:
- Cloud Leadership: Azure’s growth continues to drive Microsoft
- Diverse Offerings: Products like Office 365, LinkedIn, and Xbox provide diversified revenue streams.
- AI Integration: Strategic partnerships, notably with OpenAI, enhance Microsoft’s AI capabilities.
Risks:
- Intense Competition: Rivalry with other cloud providers like AWS and Google Cloud.
- Regulatory Scrutiny: Potential antitrust issues and data privacy regulations.
- Market Dependence: Heavy reliance on cloud and software markets for growth.
2025 Forecast:
Analysts project Microsoft’s stock to reach $500 by the end of 2025, supported by strong cloud growth and AI initiatives.
Amazon.com Inc. (AMZN)
Amazon maintains its dominance in e-commerce and cloud services. The stock price is $223.53, reflecting a 1.37% increase from the previous close.
Strengths:
- E-commerce Leadership: Extensive product offerings and global
- AWS Growth: Amazon Web Services remains a significant profit driver.
- Logistics Network: Robust fulfillment infrastructure enhances delivery efficiency.
Risks:
- Regulatory Challenges: Antitrust issues and labor regulations could impact operations.
- Profit Margins: E-commerce segment operates on low margins, making profitability sensitive to cost increases.
- Market Saturation: High penetration in core markets necessitates international expansion for growth.
2025 Forecast:
Analysts have set a price target of $265 for Amazon by the end of 2025, citing strong AWS revenue growth and market expansion.
Alphabet Inc. (GOOGL)
Alphabet continues to lead in digital advertising and cloud services. The stock is trading at $189.56, up 0.61% from the previous close.
Strengths:
- Advertising Dominance: Google’s advertising business is a major revenue driver.
- Innovation: Investment in AI, cloud computing, and autonomous vehicle
- Diverse Portfolio: Includes YouTube, Google Cloud, and hardware products.
Risks:
- Regulatory Pressures: Antitrust cases and data privacy laws pose significant risks.
- Dependence on Advertising: Heavy reliance on ad revenues makes it vulnerable to market shifts.
- Competitive Threats: Intense competition in cloud computing and AI sectors.
2025 Forecast:
Analysts expect Alphabet’s stock to reach $220 by the end of 2025, driven by growth in cloud services and advertising.
Meta Platforms Inc. (META)
Meta focuses on social media and metaverse initiatives. The stock price is $605.61, reflecting a 1.41% increase from the previous close.
Strengths:
- Social Media Leadership: Ownership of platforms like Facebook, Instagram, and WhatsApp.
- Advertising Revenue: Strong ad revenue generation through tar
- Metaverse Investment: Significant resources allocated to virtual reality and metaverse development.
Risks:
- Privacy Concerns: Ongoing issues with data privacy and user trust.
- Regulatory Scrutiny: Faces significant regulatory challenges globally.
- Competition: Intense competition from other social media and tech companies.
2025 Forecast:
Analysts project Meta’s stock to reach $700 by the end of 2025, supported by AI innovation and favorable valuation.
Ready to capitalize on this growth?
Start trading U.S. stocks on Morpher with zero commissions.
If you’re new to investing, take a step back and check out our how to invest in the stock market guide. Or, if you’d prefer to invest in a basket of top-performing stocks, explore our S&P 500 guide for exposure to a broad selection of successful U.S. stocks.
No need to spend hundreds of dollars on a single share. With fractional investing, you can get started with as little as 1€. Get started today on Morpher.
FAQ: Magnificent 7 Stocks
What are the Magnificent 7 stocks?
The Magnificent 7 stocks refer to a group of seven tech giants that have demonstrated significant growth and resilience in the stock market.
Why are they called the Magnificent 7?
They are dubbed the “Magnificent 7” due to their dominant market positions, robust financial health, and significant contributions to technological advancements. These companies are key drivers of market performance and innovation in their respective sectors.
How have the Magnificent 7 stocks performed recently?
Despite their strengths, the Magnificent 7 recently faced significant challenges, including a tech selloff that led to substantial declines in stock values. Tesla experienced the steepest drop, with nearly a 19% decline following lackluster earnings. Alphabet also saw a significant decline of more than 12% due to disappointing cloud revenue results.
Why are these stocks important for investors?
The Magnificent 7 stocks are crucial for their market leadership, economic impact, and investment stability. They drive technological innovation, influence broader economic trends, and offer growth potential, making them attractive for both short-term and long-term investors.
What should investors consider when investing in the Magnificent 7?
Investors should consider the potential risks, such as regulatory scrutiny, market volatility, and the need for continuous innovation. It’s essential to stay informed about market trends, regulatory changes, and the companies’ performance to make informed investment decisions.
Can I trade the Magnificent 7 stocks on Morpher?
Yes, all the Magnificent 7 stocks are available for trading on Morpher with zero commission. Morpher offers real-time market insights and AI-powered analysis to help you make informed trading decisions. Trade stocks effortlessly on Morpher today and leverage cutting-edge technology to enhance your investment strategy. Sign up and enjoy your welcome bonus!
Disclaimer: All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. This post does not constitute investment advice.
Painless trading for everyone
Hundreds of markets all in one place - Apple, Bitcoin, Gold, Watches, NFTs, Sneakers and so much more.
Painless trading for everyone
Hundreds of markets all in one place - Apple, Bitcoin, Gold, Watches, NFTs, Sneakers and so much more.
