3 “Magnificent Seven” Stocks That Can Plunge Up to 86%, According to Select Wall Street Analysts

The stock market has been on a wild ride in 2023, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all hitting record highs. This surge has been largely driven by the performance of the “Magnificent Seven” stocks, which include Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla.

These seven companies have not only outperformed the market over the past decade but also have strong competitive advantages in their respective industries. However, not all analysts are bullish on their future prospects. Some believe that certain stocks, such as Meta Platforms, Nvidia, and Tesla, could see significant declines in the near future.

For example, one analyst has set a price target of $360 for Meta Platforms, implying a 24% downside from its current price. Similarly, another analyst has a price target of $620 for Nvidia, suggesting a 31% decline. And the most bearish outlook is for Tesla, with one analyst predicting an 86% drop in its stock price.

While these predictions may seem dire, it’s important to consider the factors driving them. For Meta Platforms, concerns about its lack of new revenue streams and increased capital expenditures for AI technology are weighing on its outlook. Nvidia faces challenges from both external competitors and internal competition from its top customers. And Tesla is grappling with increasing competition in the EV market and declining margins.

Despite these challenges, it’s worth noting that all three companies have strong balance sheets and the ability to invest in future growth opportunities. And as history has shown, market downturns are usually short-lived, while periods of growth can last for years.

At DailyBubble, we believe that while caution is warranted, it’s also important to consider the long-term potential of these companies. As always, diversification and a focus on fundamental analysis are key to successful investing in the stock market.