To The Moon

We just started Q2 2024 yesterday (01 April 2024), even though the stock market headed higher in Q1, the “Magnificent Seven” trade is beginning to fizzle, with $Apple(AAPL)$ , Alphabet , and $Tesla Motors(TSLA)$ making the most decline during the first quarter of 2024.

We saw S&P 500 going up 10% in Q1 2024, this is the best start to a new year since 2019, this happen even when two of its biggest members suffered a double-digit declines.

Apple declined 11% during the first 3 months of 2024, Tesla dropped even more by almost 30%, Alphabet has been declining most of the 1st quarter, before making good run by going up 8% during the last 2 weeks.

While there are declines from the 3 members, the other 4 big tech stocks from the Magnificent 7 (NVIDIA, Meta Platform, Microsoft Amazon) has a fantastic rise, it has overrun the S&P 500. This has some market analyst calling them the new Fab Four.

So how do we continue to trade in Q2 2024?

The demand for AI supporting technology have been growing and this will continue into rest of quarters in 2024. We need to look closely at $NVIDIA Corp(NVDA)$ as we saw their shares went up more than 80% at the beginning of 2024.

If we look at how Nvidia have navigating the first quarter of 2024 after going triple times in 2023, we could see that the buying sentiment for Nvidia is not weakening, though, we saw some decline in MACD, to me, there is an opportunity to look at loading up.

$Meta Platforms, Inc.(META)$ has announced in its last earning release that they will be paying first shareholder dividend. This is partly due to the investments that they make in artificial intelligence which has make targeted ads smarter. I believe this is going to bring them greater revenues from the ads segment.

So this is one of the stock we could look at investing if you have done so, we are expecting Meta’s first quarter 2024 results after market close on Wednesday, 24 April 2024. We could see that as we entered Q2, Meta did have some investors selling off, but there should be temporary, but it is worth noting.

$Microsoft(MSFT)$ valuation went to top $3 trillion and surpassed Apple in the early part of 2024. Microsoft is also another company who has embarked on the AI journey early, their copilot software should be maturing through 2024, this could be able to garner some support and interest from their enterprise customers.

The main revenue I am looking at Microsoft is their business segment, if we looked at how Microsoft planned their licensing, that is how they makes money. If we look at how Microsoft have been trading recently, there have been some concerns of the lawsuit, this have some impact on how investors perceive their stock price. In the long term, I would think Microsoft is still a long bet.

Summary

No matter whether Magnificent Seven becomes Fabulous Four, there are still some other macros factors we should look at as an investors.

The economic data, Fed’s direction would have some impact on the S&P 500 index as a whole, but we could focus on how the companies make their money, the consistent revenue stream, business plan is important to identify a good long term performing stocks.

There might be times that a stock make a significant upside, but we need to ask ourselves, could this sustained?

Appreciate if you could share your thoughts in the comment section whether you think the new Fab 4 could power S&P 500 to a new highs in 2024?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.