S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Sports analytics may be outnumbered when it comes to artificial intelligence
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
College athletes will need school approval for NIL deals under bill passed by Utah Legislature
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Sports analytics may be outnumbered when it comes to artificial intelligence
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
College athletes will need school approval for NIL deals under bill passed by Utah Legislature
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Sports analytics may be outnumbered when it comes to artificial intelligence
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
College athletes will need school approval for NIL deals under bill passed by Utah Legislature
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Sports analytics may be outnumbered when it comes to artificial intelligence
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
College athletes will need school approval for NIL deals under bill passed by Utah Legislature

Will the dominance of the Magnificent 7 persist in 2024?

Magnificent 7 stocks

Key Points

  • The "Magnificent Seven" significantly influenced market gains in 2023.
  • The Magnificent Seven stocks collectively hold nearly 28% of the SPDR S&P 500 ETF Trust's (NYSE: SPY) total weighting, significantly influencing its performance.
  • In 2024, dominance has concentrated on a few Magnificent Seven members, with others underperforming the overall market.
  • 5 stocks we like better than Meta Platforms

Since the beginning of last year, several companies have shone as beacons of innovation and growth. These giants, now well-known as the "Magnificent Seven," have captivated investors with their impressive track records, unbelievable stock performance, and visionary strategies. 

Now, as 2024 is well and truly underway, it's time to peel back the curtain and examine how these exceptional companies have performed year-to-date and whether or not that theme remains intact. 

The extent to which these powerhouses influenced the market’s gains last year was remarkable. So the question for 2024 is, will that dominance persist? Or might it only survive in a handful of the Magnificent Seven stocks while other members lose their influence? Let’s look at how the year has shaped up so far for the seven members.

Magnificent 7’s dominance persists

The SPDR S&P 500 ETF Trust NYSE: SPY, a reliable benchmark for the overall U.S. stock market, is dominated by the magnificent seven. The ETF’s top seven holdings are the seven members, which comprise a total combined weighting of almost 28%. 

So, a quick guide to assessing whether the theme of 2023 remains so far in 2024 could be to gauge the market's overall performance. Impressively, year-to-date, the market is already up almost 5%, with the popular ETF trading at all-time highs and fast approaching the elusive $500 mark.

Notably, however, unlike 2023, this year's dominance has further concentrated in just a few of the seven members, with other members underperforming. 

Here’s what you should know about each one:

Meta Platforms NASDAQ: META

Shifting from a social media focus to constructing the metaverse, the company rebranded from Facebook to Meta Platforms in 2021. Following its remarkable rebound last year and triple-digit gains, the stock is up 33% year-to-date. The sentiment continues to grow bullish surrounding the stock, as it is Top-Rated, Upgraded, and one of the most followed names. Meta has a Moderate Buy rating and price target forecasting an almost 5% upside. 


Nvidia NASDAQ: NVDA

Nvidia specializes in top-tier graphics and mobile processors for various devices. Among the Magnificent Seven, its exceptional performance shines, boasting an impressive 212% gain over the previous year and already 41% gain year-to-date. This is an outstanding achievement, considering its market capitalization now stands at $1.72 trillion. Analysts are bullish on the stock, placing a moderate buy rating. However, the stock might be entering overbought territory as the consensus price target is now 11.5% below the current price of NVDA.

Microsoft NASDAQ: MSFT

Microsoft, the world's largest software company, is renowned for Windows, Azure cloud services, LinkedIn, Office suite, and Xbox gaming. In 2023, its acquisition of Activision Blizzard and innovative AI developments with OpenAI garnered significant attention. Year-to-date, the software giant is already up double-digits, over 10%, and has projected earnings growth of 13.10%. The stock is a Top-Rated and one of the Most-Upgraded names, possessing a strong dividend. 

Apple NASDAQ: AAPL

Apple has fallen short of the mark year-to-date, with shares down just over 2%. Microsoft has also overtaken the company as the world's most valuable company. The company’s rating of Moderate Buy is greater than that of the S&P 500’s Hold rating. Additionally, analysts have given the stock a consensus price target of $205.72, forecasting an upside of over 9%. 

Amazon.com NASDAQ: AMZN

Amazon is a major global player in online retail, cloud services, and digital entertainment. Thanks to an impressive earnings beat, Amazon has surged by almost 12% year-to-date. Notably, analysts forecast a significant upside for the stock despite its impressive yearly gains. The consensus price target of $197.95 sees a nearly 17% upside.

Tesla NASDAQ: TSLA

Tesla pioneers electric vehicles, driver assistance tech, and renewable energy goods. Dominating U.S. EV sales, it's helmed by the charismatic CEO Elon Musk. Year-to-date shares of the EV maker have taken a hit, down over 23%, and face growing pressure of no longer being a part of the so-called mag seven, with Berkshire Hathaway NYSE: BRK.B potentially next-in-line as it's the eighth largest holding in the SPY ETF, after Tesla. 

Alphabet NASDAQ: GOOGL

Holding over 90% of the global search market, Alphabet leads in online search. Additionally, Google's Bard AI chatbot competes prominently with ChatGPT. Like many above, Alphabet is favored among analysts, who have placed a moderate buy rating on the stock and called for over 5% upside. With a modest P/E of 25.16 and projected earnings growth of almost 15% for the full year, shares of Alphabet may play catch up to some of those mentioned above year-to-date high flyers. 

→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) (Ad)

Should you invest $1,000 in Meta Platforms right now?

Before you consider Meta Platforms, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Meta Platforms wasn't on the list.

While Meta Platforms currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 "Recession Proof" Stocks That Will Thrive in Any Market Cover

Which stocks are likely to thrive in today's challenging market? Click the link below and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Amazon.com (AMZN)
4.8911 of 5 stars
$178.22+0.8%N/A61.46Buy$197.95
NVIDIA (NVDA)
4.6507 of 5 stars
$822.79+4.0%0.02%68.91Moderate Buy$824.90
Tesla (TSLA)
4.391 of 5 stars
$202.64+0.4%N/A47.02Hold$219.89
Microsoft (MSFT)
4.8732 of 5 stars
$415.50+0.4%0.72%37.57Moderate Buy$411.06
Alphabet (GOOGL)
3.4143 of 5 stars
$137.14-1.0%N/A23.64Moderate Buy$153.65
Apple (AAPL)
4.9129 of 5 stars
$179.66-0.6%0.53%27.98Moderate Buy$205.27
Meta Platforms (META)
4.0011 of 5 stars
$502.30+2.5%0.40%33.71Moderate Buy$494.53
Compare These Stocks  Add These Stocks to My Watchlist 

Ryan Hasson

About Ryan Hasson

  • Ry.has7@gmail.com

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Experience

Ryan Hasson has been a contributing writer for MarketBeat since 2023.

Areas of Expertise

Equity research and analysis, technical analysis and price action, market sentiment and underlying themes, risk management and trading psychology

Education

Bachelor of Commerce in Financial Management

Past Experience

Equities trader, Kershner Trading Group, business analysis consultant, SMB Capital

Zoom International: Business Analysis Consultant.


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