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The Magnificent Seven Had A Huge Year. All Are Near Buy Points.

The Magnificent Seven Had A Huge Year. All Are Near Buy Points.


The actions of the Magnificent Seven — Amazon.com (AMZN), Apple (AAPL), parent Google Alphabet (GOOGLE), Metaplatforms (META), Microsoft (MSFT), Nvidia (NVDA) And You’re here (TSLA) are closing out a huge year, all handily beating the S&P 500 index.




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Nvidia and Meta Platforms stocks are the top performers in the S&P 500 in 2023, with Tesla and AMZN stocks among the top 20.

But these megacaps could be primed for further gains. Nvidia and Microsoft are leading the AI ​​boom, with Meta, Google and Amazon also making big moves in artificial intelligence. Even Tesla claims AI intentions. Apple has remained relatively quiet about the future of AI, but is “investing quite a bit,” according to CEO Tim Cook.

Google, Apple and Amazon stocks are in buy zones. Microsoft and Nvidia shares have forged new shallow bases within previous buy zones. Tesla stock is hovering around early entries while meta platforms are slightly extended.

Tesla, Amazon, Microsoft, Nvidia and Meta Platforms stocks are active MII classification. Amazon and Meta stocks are activated Swing Trader. MSFT stock is on the Long-term leaders in IBD list. Nvidia and Meta Stocks Are Rising MII 50. The meta-stock is on the IBD large cap 20.

Magnificent seven stock market performances

BusinessTeleprinterMarket capitalization, in trillionsgain 2023
AppleAAPL$3.0249.0%
MicrosoftMSFT$2.7956.5%
AlphabetGOOGLE$1.7658.9%
AmazonAMZN$1.5982.6%
NvidiaNVDA$1.22238.9%
MetaplatformsMETA$0.92197.8%
You’re hereTSLA$0.80105.5%
S&P50024.6%

S&P 500: Amazon stocks

Amazon shares rose early in the year, consolidated for a few months, then broke out in May from a bottom that was mostly below the 200-day line. The e-commerce and cloud computing giant hit 145.86 on September 14, then sold off until October 26. That marked a low for the Nasdaq, in part because AMZN stock soared in the following session.

Shares are trading around the 145.86 consolidation point of purchase from mid-November to mid-December, before moving to the top of the 5% buy zone. Investors could use 149.26 as an entry high.

Amazon shares have soared 82.6% so far in 2023.

Amazon’s profits jumped 236% in the third quarter, with revenue growth accelerating for a second straight quarter to 13%.

Apple broth

Apple stock saw a sharp rise in early January, reaching a record high of 198.23 on July 21. Stocks consolidated for several months, before breaking out from a record high. cup base with handle on December 5. After hitting a record high of 199.62 on Dec. 14, shares returned to around the 192.93 buy point and 21-day line. In a buy zone, investors may want to see some strength before taking a position.

AAPL stock jumped 49% in 2023 through December 28.

Apple’s profits rose 13% in the fiscal fourth quarter, the second consecutive quarter of acceleration. But revenue has fallen for four straight quarters from a year earlier.


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Google Stocks

After an initial sprint into 2023, Google stock consolidated and broke out of a cup-with-handle base in early April, although it didn’t clear that area decisively until early May. The search engine giant, with growing ambitions in cloud computing and AI, stood out in late July and late December, according to MarketSmith. Shares are trading just above a 139.42 buy point.

GOOGL stock is up 58.9% through December 28.

Google’s profits have improved from -19% to -11%, to +17% and +42% in recent quarters. Revenue growth has accelerated over the past three quarters, to 11%.

Metastock

Meta stock actually bottomed in November 2022 and continued through early February 2023. Parent company Facebook and Instagram emerged from a slump. flat base in March, then skyrocketed to 326.20 on July 28. The meta-platforms then consolidated over several months, before finally disappearing for good in December after a 50-day line test. Shares are now extending from a consolidation buy point of 326.20 or 330.54. Investors could consider 342.92 as an alternative entry.

Meta stock is up 197.8% so far in 2023.

Meta earnings and sales growth have accelerated over the past three quarters, with EPS up 168% in the third quarter and revenue up 23%.

Microsoft Stocks

MSFT stock has traded closely over the past six weeks, breaking into a flat base as of Friday’s close, with a buy point of 384.30. The cloud computing, AI and software giant has followed the 21-day line, trading in a buy zone from a cup base since late July. Microsoft stock surged from early January to early February, then came off a flat base in March, continuing through July.

MSFT stock soared 56.5% through December 28.

Microsoft’s earnings and sales growth have accelerated over the past three quarters, with gains of 27% and 13%, respectively, in the first quarter of fiscal 2024.

NVIDIA Stock

Nvidia shares, like Meta, bottomed in October 2022. Stocks exploded cup base at the end of January. NVDA stock offered new entries in early and late May, before finally peaking at 502.66 on August 24. double bottom base on November 10, reaching a record high of 505.48 on November 17. Nvidia stock then returned to the 50-day line but quickly reclaimed the 476.09 buy point. Shares have now forged a flat base with an entry at 505.48.

NVDA stock exploded for a 238.9% gain as of December 28.

Nvidia’s profits have soared on huge demand for AI chips, with massive gains of 429% and 593% over the past two quarters. Revenues soared 101% and 206%. The chip giant announced strong guidance for the final quarters. US restrictions on AI chip exports to China pose a hurdle for Nvidia. The same goes for competing AI chips from AMD and Intel, as well as in-house chips from Microsoft and other big buyers.


Tesla’s EV Business Faces ‘Challenges’ of 2024. This May Not Stop TSLA Stock.


S&P 500: Tesla shares

Tesla stock hit a two-year low intraday on Jan. 6 as the electric vehicle giant announced significant price cuts. But stocks reversed higher that day, which also marked a rise in the Nasdaq. follow up, and continued to soar. Stocks rallied through mid-February, hitting resistance at the 200-day line. TSLA stock emerged from this consolidation, decisively crossing the 200-day mark in early June. Shares reached a high of 299.29 in 2023. But they fell during the second and third quarter results, ultimately bottoming at 194.07 on October 31. Tesla stock has rebounded and is trading around an anticipated entry level of 259.84. It has a buy point of 278.98 on an ugly double bottom base.

Tesla stock has soared 105.5% so far this year.

Tesla’s profits struggled in 2023, falling 37% in the third quarter to their worst level in more than two years. Ongoing price cuts have boosted vehicle deliveries, but at the expense of once-strong margins.

Tesla will report its fourth-quarter and full-year deliveries around January 2, 2024. Analysts expect deliveries to be close to the electric vehicle giant’s target of 1.8 million.

Please follow Ed Carson on X/Twitter at @IBD_ECarsonDiscussions about @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.

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