In One Chart | 'Mag 7' Earnings Unveiled - Who's the Ultimate Profit Powerhouse?

In One Chart joined discussion · May 24, 2024 18:55

Known as the Magnificent Seven, $Apple (AAPL.US)$, $Microsoft (MSFT.US)$, $Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$, $NVIDIA (NVDA.US)$, $Meta Platforms (META.US)$, and $Tesla (TSLA.US)$ certainly lived up to their reputation with significant gains in 2023&2024. With the current earnings season wrapping up, the seven major tech companies have released their first-quarter results. A closer look reveals that cloud services and AI are becoming increasingly central to their businesses, highlighting these areas as crucial for demonstrating future potential.

In One Chart | 'Mag 7' Earnings Unveiled - Who's the Ultimate Profit Powerhouse?

Overall, Nvidia, Microsoft, Google, Meta, and Amazon exceeded market expectations with strong year-over-year growth in revenue and net profit. On the other hand, Tesla underperformed, with declines in both global revenue and net profit, and a crisis in free cash flow. Microsoft has eclipsed Apple stock in terms of market cap weighting on the Nasdaq. MSFT stock now accounts for 9.7% of the tech-heavy index, compared to 8.9% for the iPhone maker, which gapped up on its May 2 earnings report.

At 7.2%, Nvidia's percentage of the Nasdaq now outpaces Alphabet (6.6%) and Amazon (5.8%). Meta stands to 3.6%. $NVIDIA (NVDA.US)$ has solidified its position as a market leader with the highest net profit margin, surpassing analyst expectations with its latest earnings and setting itself apart from its Magnificent Seven peers. The company's bullish forecasts highlight its dominance in benefiting from AI spending, with tech giants like $Microsoft (MSFT.US)$ and $Alphabet-A (GOOGL.US)$ lining up for its AI accelerators.

$S&P 500 Index (.SPX.US)$ $NASDAQ 100 Index (.NDX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$

Source: Financial Review, Investor's Business Daily

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