Finance

Forget about the Seven and focus on the Five.


this Hao Qi Stocks—S&P 500 Giants amazon.com (Amazon), apple (AAPL), Google parent company letter (Google), meta platform (Mehta), Microsoft (Microsoft Corporation), Nvidia (NVDA) and Tesla (Tesla)—have been grouped together since the start of the bull market in January 2023.




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But since mid-2023, and certainly into 2024, there are clear differences between the Big Seven. The Big Five stocks of Nvidia, Meta Platforms, Google, Microsoft, and Amazon were all up in both time frames, outpacing the S&P 500 and Nasdaq Composite. Apple stock was flat in both cases. Tesla stock has lagged significantly on these time frames.

Top 7 Stock Performances

company stock ticker Stock changes since June 30 2024 changes
Nvidia NVDA 44.27% 23.24%
meta platform Mehta 37.34% 11.35%
Google Google 27.14% 8.94%
Amazon Amazon 22.06% 4.73%
Microsoft Microsoft Corporation 18.61% 7.42%
apple AAPL -0.80% -0.06%
Tesla Tesla -30% -26.25%
S&P 500 Index 9.90% 2.54%
Nasdaq 12.09% 2.96%

S&P 500 giant stocks gain

Fundamentals also show the gap between the Big Five and their less impressive peers. Meta platforms, especially Nvidia, are growing rapidly. Amazon’s earnings are recovering strongly, while Google and Microsoft are posting solid double-digit growth.

Apple’s profits increased slightly, but sales fell for four consecutive quarters compared with the same period last year; Tesla’s profits fell sharply, and there will be almost no growth momentum by 2025.

Finally, Nvidia and Microsoft are leaders in artificial intelligence, a transformational theme driving the market rebound. Meta, Google and Amazon are also important players. Amazon, Microsoft, and Google are also cloud computing giants, and Nvidia is powering much of these efforts.

Of course, the technical and fundamentals of these S&P 500 giants could differ over the course of a few days. Microsoft, Google, Amazon, Meta Platforms and Apple are all set to release reports next week.

Meta stock and Nvidia are both in IBD rankings.Microsoft and Nvidia stocks rise swing trader.MSFT stock is now online IBD Long-Term LeaderGoogle stock, Nvidia, Meta and Microsoft are all in IBD50Meta, Google and Nvidia are all there IBD Large Cap 20.

NVIDIA Stock

Nvidia shares have gained 23.2% in 2024 and are up 44.3% since June 30.S&P 500’s top performer in 2023, NVDA stock enters new year at No. 1 behind Juniper Networks network (National Public Radio), is being acquired.

The AI ​​chip leader spent much of the second half of 2023 trading sideways.

NVDA stock finally broke out of its range on January 8, posting a strong breakout.

Nvidia and competitors Advanced Micro Devices (AMD) released a new AI chip on the same day.

That’s fueled sharp gains for chips and the broader market, shrugging off a tough start to 2024.

Due to the huge demand for high-performance artificial intelligence chips, Nvidia’s profits have shown explosive growth. In the past two quarters, earnings per share soared 429% and 593%, and revenue grew 101% and 206%.

Nvidia won’t report fourth-quarter earnings until the end of February. AMD will report on Tuesday. Additionally, comments from Microsoft, Meta, Google and Amazon on earnings calls this week will provide insight into Nvidia chip demand.


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yuan stock

Meta shares are up 11.35% in 2024, part of a 37.3% surge since June 30.

From late July to mid-December, stock prices traded sideways, although relative strength line remain stable or even rise.Since mid-December, the share price has

Over the past few quarters, meta earnings have risen from -52% to -3% to +31% and +168%. Some of this reflects cost constraints imposed by layoffs and a degree of curbing Metaverse ambitions. But it also reflected a resurgence in online advertising, which saw revenue growth increase from -4% to +23% over the same period.

Meta reported fourth-quarter earnings late Thursday.

Google stock

Google shares are up 8.9% in 2024 and 27.1% since mid-2023.

Google’s profit and revenue growth have also accelerated over the past three quarters. EPS growth rose from -19% to +42%, while revenue growth rose from 1% to 11%.

Google released its fourth-quarter results late Tuesday.


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Amazon Stock

Amazon shares are up 4.7% this year, but are up 22.1% since mid-2023. The stock decisively cleared the consolidation in mid-December and is now continuing that trend. Despite Thursday’s earnings report, controversial AMZN stock remains within 10-week rebound range and the report will significantly increase risks.

Amazon’s profit increased significantly quarter-on-quarter, from 3 cents in the fourth quarter of 2022 to 31 cents in the first quarter of 2023, 65 cents in the second quarter, and 94 cents in the third quarter. The latter was higher than last year. It grew by 236% during the same period. The growth rate has picked up in the past two quarters, reaching 13% in the third quarter.

S&P 500 Stocks: Microsoft

Microsoft shares have gained 7.4% in 2024 and are up 18.6% since June 30.

The Dow Jones giant paused from mid-July to late October, but then rallied following its fiscal first-quarter earnings. MSFT stock subsequently paused in buy territory for two months before bouncing off the 50-day line a few days later in 2024. It’s just out of buying range now.

Microsoft’s stock currently has a market value of $3.002 trillion, slightly higher than Apple’s valuation of $2.992 trillion.

Microsoft’s profit and sales growth have accelerated slightly over the past three quarters. Earnings per share rose from -6% to +27%, while sales growth rose from 2% to 13%.

Microsoft released its second-quarter earnings Tuesday night.

Apple Stock

Apple shares have fallen less than 0.1% so far in 2024 and have fallen 0.8% since mid-2023. The stock fell sharply in early 2024 as analysts rushed to downgrade their ratings. Part of the reason reflects growing concerns about demand for Apple’s iPhones in China. But an upgrade to the upcoming Vision Pro mixed reality headset and Quiet’s artificial intelligence efforts helped trigger a rally above the 200-day and 50-day lines, providing a positive entry into the new flat bottom. Investors can use the January 24 high of 196.38 as a reference. A new early entry.

Apple’s profit growth has accelerated in the past three quarters, from -10% to 0%, to +5% and +13%, but sales growth has declined slightly for four consecutive quarters.

Apple’s first-quarter earnings will be released on Thursday night.


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Tesla Stock

Tesla shares have plummeted 26.25% so far in 2024 and 30% since mid-2023, falling to their worst level since May last year, with the RS line at a one-year low.

Tesla stock is the second-worst performer in the S&P 500 in 2024, behind Archer Daniels Midland (ADM), it collapsed due to accounting problems.but it’s better than boeing company (Bachelor), which is suffering from the 737 Max 9 woes, and humana (snort), the company has issued two massive profit warnings this year.

On July 19, before the second-quarter earnings report was released, Tesla’s stock price hit a 52-week high of 299.29 points. Tesla has sold off sharply following its last four earnings reports.

Last week, Tesla reported that fourth-quarter earnings fell 40% from the same period a year earlier, while sales grew only 3.5%, both slightly below expectations. To make matters worse, the electric car giant predicts “significantly lower” delivery growth in 2024, but specific details on sales and profits are scant. The next generation of electric cars may start production in late 2025, but Elon Musk says it may be “optimistic”. As for moonshot plans, Musk said internal Dojo chips were “unlikely” and said Tesla would continue to acquire Nvidia’s chips for its artificial intelligence work.

Despite its recent plunge, Tesla stock trades at 57 times forward earnings, by far the highest among the Big Seven.

The New Seven?

Alternatively, a new Seven Heroes can be forged in the following ways: British Semiconductor (TSM) and Eli Lilly and Company (Li Lai) Join Fab 5.

TSMC produces chips for companies such as Nvidia and Apple. It is at the forefront of chip manufacturing technology and is a market driver. Its upbeat 2024 revenue forecast sent shares of chipmakers and chip equipment makers soaring.

S&P 500 giant Eli Lilly and Denmark’s Novo Nordisk (NVOCC), is the leader in weight loss pills. Together with artificial intelligence, weight loss pills have the potential to transform society and many industries.

TSM and Eli Lilly shares have both seen solid gains starting in 2024, rising 12.75% and 9.7% respectively. Both have performed strongly since mid-2023, with Taiwan Semiconductor up 16.2% and LLY stock up 36.3%.

Eli Lilly is in the buy zone.

Both are currently worth more than Tesla stock.

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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