The most popular stocks are often given different names to distinguish them from the general mass of securities — acronyms. For example, such abbreviations as FANG, and FAANG are made up of the first letters of shares. According to the idea of Bank of America, analysts in 2022 appeared “Magnificent Seven” of shares.
“The Magnificent Seven” are the U.S. stocks (technology sector) with the largest capitalization. These include:
- Microsoft,
- Apple,
- Nvidia,
- Amazon,
- Alphabet,
- Meta,
- Tesla.
Six of these companies are part of a rare club with a capitalization of more than a trillion dollars! The Magnificent Seven share over a quarter of the S&P 500 index and more than half of the Nasdaq 100 index. According to Deutsche Bank, the aggregate market capitalization of the “Magnificent Seven” stocks has already exceeded the capitalization of any global stock market (except the U.S. market). And long positions in “Magnificent Seven” stocks are still the most “populous” trade among global managers.
The infographic shows the capitalization and share price of stocks from the Magnificent Seven
| Stock name | Capitalization | Stock price |
| Microsoft | $3,02 trillion | $406.74 |
| Apple | $2,8 trillion | $181.38 |
| Nvidia | $1,9 trillion | $774.69 |
| Amazon | $1,8 trillion | $173.12 |
| Alphabet | $1,7 trillion | $137.83 |
| Meta | $1,2 trillion | $485.42 |
| Tesla | $645 billion | $203.21 |
The high level of concentration in the indices reflects the current situation in the stock market. In each decade there have been favorites, which over time have ceded their leadership. Currently, all members of the Magnificent Seven are market and industry leaders. But what will happen next?
Magnificent Seven predictions for 2024
Right now, the Magnificent Seven stocks are competing to incorporate AI into their products. The leaders are MSFT and NVDA. Just these stocks have risen the most. And the former has overtaken Apple in the status of the most expensive company in the world. Market participants are waiting for the easing of monetary policy in the U.S. Money will become “cheaper” and free capital will be redirected to the stock market, led by the above-mentioned stocks.
For each security, it is worth separately designating a target price for Q1 and Q2 2024
| Microsoft | $471 |
| Apple | $200 |
| Nvidia | $900 |
| Amazon | $205 |
| Alphabet | $152 |
| Meta | $530 |
| Tesla | $225 |
Tesla has been getting a lot of attention lately. Many analysts have argued for Eli Lilly stock to replace the car company’s shares. Also, not too long ago, the company ceded its status as the most expensive automaker to Mercedes-Benz. These factors are why the stock’s outlook is so far behind the rest of the market. But despite the accumulated slight negativity, TSLA is still on the “elite list” of U.S. stock market stocks.
If you think otherwise and believe in the further rise or fall of the “Magnificent Seven” — it is easy to open long or short positions on the Movo platform. At the same time, there is a great opportunity to increase your trading capital and potential profit thanks to a multiplier of up to 30x. Flexible Stop Loss/Take Profit orders can help you to take care of position security.
Download the App
