Does Mag 7 Leadership Remain Intact Post-Tesla and Meta Disappointments?

Zacks04-27

We have Apple and Amazon on deck to report Q1 results this week, and we will need to wait a few more weeks before we see Nvidia’s numbers. But we have already seen Q1 results from the other four ...

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But we have already seen Q1 results from the other four ...</p>\n\n<a href=\"https://finance.yahoo.com/news/does-mag-7-leadership-remain-222300801.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4504","symbol_name":"桥水持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/does-mag-7-leadership-remain-222300801.html","article_id":"2430550327","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jNBiHeflZ6N8UqaNFfHW.A--~B/aD00MTE7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/8e117bda93f994d9da5efbb462a35e4f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430550327","pubTimestamp":1714170180,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We have Apple and Amazon on deck to report Q1 results this week, and we will need to wait a few more weeks before we see Nvidia’s numbers. But we have already seen Q1 results from the other four members of the ‘Magnificent 7’ group: Alphabet GOOGL, Microsoft MSFT, Meta META, and Tesla TSLA.It is hard to find any weakness in the Microsoft and Alphabet reports, and the market’s reaction to these two reports shows that investors agree with that assessment. The Alphabet report appears to reassure investors that it has a credible AI strategy in place and may not be that far behind Microsoft in this critical race.The market reaction to the Tesla and Meta reports needs to be contextualized.Meta shares were very strong performers prior to this report, and any way you look at the company’s Q1 results, they are impressive. Meta’s Q1 earnings were up +80.5% from the year-earlier period on +27.3% higher revenues. Investors’ beef with the Meta report is the company’s guidance for capital expenditur","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4504":"桥水持仓","OEX":"标普100",".SPX":"S&P 500 Index","IVV":"标普500指数ETF","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","TSLA":"特斯拉","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","META":"Meta Platforms","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0072462426.USD":"贝莱德全球配置 A2","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4592":"伊斯兰概念","POST":"Post Holdings","SSO":"两倍做多标普500ETF","LU0061474960.USD":"天利环球焦点基金AU Acc","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","VOO":"Vanguard标普500ETF","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","SDS":"两倍做空标普500ETF","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","SH":"标普500反向ETF","MSFT":"微软","LU2063271972.USD":"富兰克林创新领域基金","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU0823414478.USD":"法巴经典能源转换基金","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","SPXU":"三倍做空标普500ETF","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4503":"景林资产持仓","GOOG":"谷歌","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0861579265.USD":"联博低波幅策略股票基金A","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","GOOGL":"谷歌A","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","SPY":"标普500ETF","UPRO":"三倍做多标普500ETF","OEF":"标普100指数ETF-iShares"},"translate_title":"在特斯拉和Meta失望之后，Mag 7的领导地位保持不变吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLL":1,"GOOGL":1,"META":1,"POST":1,"VOO":0.9,"TSLA":0.9,"GOOG":0.9,"SPY":0.9,"MSFT":0.9,"OEF":0.6,"OEX":0.6,"SDS":0.6,"SH":0.6,"SPXU":0.6,"SSO":0.6,"UPRO":0.6,"IVV":0.6,"ESmain":0.6,".SPX":0.6},"content_text":"We have Apple and Amazon on deck to report Q1 results this week, and we will need to wait a few more weeks before we see Nvidia’s numbers. But we have already seen Q1 results from the other four members of the ‘Magnificent 7’ group: Alphabet GOOGL, Microsoft MSFT, Meta META, and Tesla TSLA.\nIt is hard to find any weakness in the Microsoft and Alphabet reports, and the market’s reaction to these two reports shows that investors agree with that assessment. The Alphabet report appears to reassure investors that it has a credible AI strategy in place and may not be that far behind Microsoft in this critical race.\nThe market reaction to the Tesla and Meta reports needs to be contextualized.\nMeta shares were very strong performers prior to this report, and any way you look at the company’s Q1 results, they are impressive. Meta’s Q1 earnings were up +80.5% from the year-earlier period on +27.3% higher revenues. Investors’ beef with the Meta report is the company’s guidance for capital expenditures, which is going up significantly to strengthen the company’s AI capabilities.\nI think the reaction is overdone, but it likely reminds investors of the pain created by the company’s earlier metaverse plans. Perhaps there is a basis for those worries, given the metaverse history. But as we are seeing with Microsoft and Alphabet, leadership in AI requires a lot of spending. If market participants are okay with Microsoft and Alphabet spending hands-over-fist on AI, then they should also be okay with Meta.\nTesla shares have been the worst performing of the group, with many starting to speak out that perhaps it didn’t deserve to be part of this group. The stock price weakness reflects the steadily deteriorating earnings outlook, with a combination of softening demand and heightened competitive pressures forcing Elon Musk to cut prices. You can see this in the chart below, which plots the stock price relative to how EPS estimates for this year and next have evolved.\nImage Source: Zacks Investment Research\nGiven this stock’s price action and estimates revision trajectory coming into the quarterly release, investors were conditioned to expect the worst from Tesla, but the actual results were simply bad (instead of ‘very bad’). They missed on the top- and bottom lines and didn’t provide any favorable or reassuring commentary about the outlook. But investors were relieved that the numbers weren’t as ugly as they had started fearing.\nTesla shares are still laggards relative to other Mag 7 stocks, as the year-to-date performance chart shows.\nImage Source: Zacks Investment Research\nUsing estimates for Amazon, Apple, and Nvidia, which will release their March-quarter results on April 30th, May 2nd, and May 22nd, respectively, and actual results for the other four members of the group, total Q1 earnings for the group are expected to be up +43.7% from the same period last year on +13.2% higher revenues.\nThe chart below shows the group’s Q1 earnings and revenue growth performance in the context of what we saw from the group in the preceding quarter and what is currently expected for the next three quarters.\nImage Source: Zacks Investment Research\nThe chart below shows the group’s earnings and revenue growth picture on an annual basis.\nImage Source: Zacks Investment Research\nPlease note that the Mag 7 companies currently account for 29.1% of the S&P 500 index’s total market capitalization and are expected to bring in 20.6% of the index’s total earnings in 2024. For 2023 Q4, the Mag 7 group has a bigger weightage, bringing in 21.6% of all S&P 500 earnings.\nThe chart below shows the group’s earnings contribution to the index over time and what is currently expected for the next two years.\nImage Source: Zacks Investment Research\nGiven the group's enormous earnings power and growth profile, it is hard to argue with its market leadership.\nBeyond these mega-cap players, total Q1 earnings for the Technology sector as a whole are expected to be up +27.1% from the same period last year on +8.7% higher revenues.\nThe chart below shows the sector’s Q4 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.\nImage Source: Zacks Investment Research\nEarnings Season Scorecard and This Week’s Earnings Reports\nWe remain in the heart of the Q1 earnings season this week, with more than 950 companies reporting results, including 177 S&P 500 members. In addition to the aforementioned Apple and Amazon reports, we literally have a representative cross-section of the market on deck to report results this week.\nThrough Friday, April 26th, we have seen Q1 results from 229 S&P 500 index members, or 45.8% of the index’s total membership. Total Q1 earnings for these 229 index members are up +2.8% from the same period last year on +3.3% higher revenues, with 78.2% beating EPS estimates and 59.8% beating revenue estimates.\nThe comparison charts below put the Q1 earnings and revenue growth rates in a historical context.\nImage Source: Zacks Investment Research\nThe comparison charts below put the Q1 EPS and revenue beats percentages in a historical context.\nImage Source: Zacks Investment Research\nThe Earnings Big Picture\nLooking at Q1 as a whole, total S&P 500 earnings are expected to be up +3.8% from the same period last year on +3.7% higher revenues, which would follow the +6.8% earnings growth on +3.3% revenue gains in the preceding period.\nThe chart below shows current earnings and revenue growth expectations for 2024 Q1 in the context of where growth has been over the preceding four quarters and what is currently expected for the following three quarters.\nImage Source: Zacks Investment Research\nLooking at the overall earnings picture on an annual basis, total 2024 S&P 500 earnings are expected to be up +8.3% on +1.7% revenue growth.\nImage Source: Zacks Investment Research\nFor a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Breaking Down Q1 Earnings Results \nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMicrosoft Corporation (MSFT) : Free Stock Analysis Report\nTesla, Inc. (TSLA) : Free Stock Analysis Report\nAlphabet Inc. (GOOGL) : Free Stock Analysis Report\nMeta Platforms, Inc. (META) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430550327"}