Is the US superlarge stock “Magnificent 7” ranked 2nd in the world in terms of total market capitalization, surpassing stock markets other than the US?
$Apple (AAPL.US)$、 $Microsoft (MSFT.US)$、 $NVIDIA (NVDA.US)$、 $Alphabet-A (GOOGL.US)$、 $Amazon (AMZN.US)$、 $Meta Platforms (META.US)$、 $Tesla (TSLA.US)$“Magnificent 7,” which consists of, is driving the rise in the US stock market this year as well, $S&P 500 Index (.SPX.US)$Ya $Nasdaq Composite Index (.IXIC.US)$Major indices such as were raised to record highs. Among them, the one that showed the most remarkable performance was NVIDIA, which has risen by nearly 60% since the beginning of the year, and meta has risen by nearly 40%.
Deutsche Bank is a very large US stock according to a new investment research reportThe current total market capitalization of “Magnificent 7” is comparable to the world's second-largest stock exchangeIt shows.It greatly separates the second-place Chinese A share market and doubles the total market value of the Japanese stock marketIt's called.
Deutsche Bank is a very large US stock according to a new investment research reportThe current total market capitalization of “Magnificent 7” is comparable to the world's second-largest stock exchangeIt shows.It greatly separates the second-place Chinese A share market and doubles the total market value of the Japanese stock marketIt's called.
Looking back on recent financial results, the “Magnificent 7” profitability gap is becoming increasingly clear.The biggest beneficiaries of the generative AI boom are NVIDIA and Microsoftbecomes。
NVIDIA surpassed expectations in all aspects, boosted European, American, and Japanese stock market indices to record highs, and the company's data center revenue continued to rise, achieving revenue of 18.4 billion dollars, up 409% from the previous year.
Meanwhile, Microsoft announced financial results that exceeded expectations, with sales of the intelligent cloud business utilizing AI reaching 25.8 billion dollars, and sales of Azure and other cloud services increasing 30%.
As for Google, although sales of the cloud business division utilizing AI made a breakthrough to 9.2 billion dollars (26% increase from the same period last year), it did not reach the quarterly growth rate of Microsoft's cloud business, which was directly linked to sluggish stock prices after financial results were announced.
Compared to Microsoft and Google, AI technology boosted the performance of Amazon and Meta to some extent, but overall performance with AI was not impressive. There are even fewer AI elements in Apple's financial results, and in the announcement after the financial results conference, Apple CEO Cook only mentioned that “Apple spent a lot of time and energy on AI,” and it is said that specific details of AI progress will be shared later.
Meanwhile, Tesla's total revenue for the fourth quarter of last year was 25.17 billion dollars, up 3% from the same period last year, falling below the forecast of 25.6 billion dollars, and EPS also fell 40% from the same period last year to 0.71 dollars and below the forecast 0.74 dollars, which once again disappointed investors.
Compared to Microsoft and Google, AI technology boosted the performance of Amazon and Meta to some extent, but overall performance with AI was not impressive. There are even fewer AI elements in Apple's financial results, and in the announcement after the financial results conference, Apple CEO Cook only mentioned that “Apple spent a lot of time and energy on AI,” and it is said that specific details of AI progress will be shared later.
Meanwhile, Tesla's total revenue for the fourth quarter of last year was 25.17 billion dollars, up 3% from the same period last year, falling below the forecast of 25.6 billion dollars, and EPS also fell 40% from the same period last year to 0.71 dollars and below the forecast 0.74 dollars, which once again disappointed investors.
Goldman Sachs said in its latest report,Will the immediate rise in tech stocks continueIt has been pointed out. The sharp rise in IT equipment investment and productivity in 1994 was the beginning of the NASDAQ upward trend over several years, and compared to the drastic fluctuations in 1999 and 2000, this time was quite weak.
Goldman Sachs cites 3 reasons.
● There is room for re-entry. Before NVIDIA's financial results were announced, Goldman Sachs's trading division pointed out that it had reduced its exposure to “Magnificent 7.”
● High-tech stocks are completely decoupled from profit margins. The NASDAQ has not been affected by rising interest rates.
● Traders have adopted a gamma trading strategy, which suggests that the market will rise at a low level and volatility will be compressed or normalized.
Christopher Woods, the global head of equity strategy at Jefferies, argued in a report last week that the most important event for world stocks last year was not a macro event, but rather Microsoft's investment in OpenAI, the ChatGPT maker.
Also, while NVIDIA's stock price is rising at a record pace, growth in performance exceeds the rise in stock prices, so it is interesting that valuation is declining. Currently,Dynamic Forward price-earnings ratio based on NVIDIA's EPS forecast is approximately 32 timesSo, rival's $Advanced Micro Devices (AMD.US)$Compared to 45 times, even considering the sharp rise since the beginning of the year,The cheapest AI brandIt has become one of them.
However, Deutsche BankPotential risks that “concentration” on “Magnificent 7” poses to the US market or global marketI warned you that it was necessary to recognize it. The bank stated that the concentration of the US stock market is comparable to the levels of 2000 and 1929, when they experienced the “IT bubble” and the “Great Wall Street Crash,” respectively.
ー MooMoo News Evelyn
Source: Bloomberg, Deutsche Bank, Goldman Sachs
This article uses automatic translation for some of its parts
Also, while NVIDIA's stock price is rising at a record pace, growth in performance exceeds the rise in stock prices, so it is interesting that valuation is declining. Currently,Dynamic Forward price-earnings ratio based on NVIDIA's EPS forecast is approximately 32 timesSo, rival's $Advanced Micro Devices (AMD.US)$Compared to 45 times, even considering the sharp rise since the beginning of the year,The cheapest AI brandIt has become one of them.
However, Deutsche BankPotential risks that “concentration” on “Magnificent 7” poses to the US market or global marketI warned you that it was necessary to recognize it. The bank stated that the concentration of the US stock market is comparable to the levels of 2000 and 1929, when they experienced the “IT bubble” and the “Great Wall Street Crash,” respectively.
ー MooMoo News Evelyn
Source: Bloomberg, Deutsche Bank, Goldman Sachs
This article uses automatic translation for some of its parts
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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181338057犬心久美子 : It's like the Sun
and Earth 
.
️
is leading, disseminating, and
to the world
️
The scale is huge
It's true that concentration might not be good.
Good balance is good.
But now, Europe has the power that M7 emits
It's in the Global South
They say complaints and opinions, but in the end, there are also innovative things that America
Everything is heading from America
I think there are benefits. semiconductor lightning machine? Is
It's the only one that can only be manufactured in the Netherlands, though.
There is also a presidential election in November. This time
With a fair and correct vote. There is no cheating in the previous Democratic Party manoeuvre nightmare, just and in a dignified manner
I want you to vote. I'm also watching market trends before and after the election.