The recent earnings reports from the Mag 7 companies have been a mixed bag, with Google and Amazon delivering strong growth but also sharply higher capital expenditures (CapEx). This has led to a sell-off in some of these stocks, with Amazon plunging roughly 10% and Microsoft falling about 15% over the past two weeks.
On the other hand, Apple has been a bright spot, rallying about 10% over the same period. Meta, which had a strong surge last week, has given back some of those gains this week. Tesla, meanwhile, has dropped sharply and slipped back below $400.
The key question now is which of these stocks is entering a buy zone. Based on the recent price action, it seems that Amazon and Microsoft may be due for a bounce. Both stocks have been hit hard by the CapEx concerns, but they still have strong growth prospects and are likely to continue investing in their businesses to drive future growth.
Google, on the other hand, has already recovered from its initial drop and may not be as attractive a buy at current levels. Apple, which has been rallying, may be due for a pullback, but its strong brand and ecosystem make it a more defensive play.
Meta and Tesla are more volatile stocks and may require more patience and a closer eye on their respective fundamentals. However, if you're looking for a potential buy zone, Amazon and Microsoft may be worth considering.
Here are some potential buy zones to watch:
Amazon: 140−150
Microsoft: 280−300
Google: 120−130 (although it may not be as attractive at current levels)
Apple: 150−160 (although it may be due for a pullback)
Meta: 300−320
Tesla: 350−400
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