The technology sector has been experiencing rough trading in recent weeks due to a delay in rate cuts and increased geopolitical tension. The Magnificent Seven stocks suffered a significant loss of $950 billion in market capitalization last week, marking the worst-ever weekly decline.
Among the Magnificent Seven, NVIDIA took the biggest hit, losing almost $300 billion in market cap. Tesla also saw a substantial decline, with a $76 billion drop in market cap. Apple, Microsoft, Amazon, Meta Platforms, and Alphabet all experienced losses in market value as well.
Despite the recent downturn, first-quarter earnings for the Magnificent Seven are expected to be strong, with a projected 33% growth in earnings compared to the same period last year. This is significantly higher than the overall S&P 500’s year-over-year earnings growth of 2.4%.
Looking ahead, Meta Platforms, Microsoft, and Alphabet are set to release their earnings this week. Meta Platforms has a positive earnings estimate revision and a Zacks Rank #2, indicating a potential earnings beat. Microsoft and Alphabet, on the other hand, have seen negative earnings estimate revisions but still have solid earnings growth expectations.
Overall, while the technology sector may be facing short-term challenges, the long-term outlook remains positive. DailyBubble believes that investors should focus on the strong fundamentals of these companies and their potential for growth in the future.