The Magnificent Seven Stocks Driving Market Gain

by Warren Seah

The year 2023 is coming to a close, and the S&P 500 has seen an impressive gain of 24%. However, a significant portion of this rally can be attributed to just seven stocks, aptly named the Magnificent Seven. These stocks include Apple,, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla.

The Magnificent Seven stocks have been exceptional performers this year, collectively achieving an average year-to-date gain of 112%. Their outstanding performance has resulted in a massive $5.2 trillion increase in market capitalization, which accounts for approximately 63% of the overall return on the index in 2023.

While the rally has propelled a few stocks in the group to reach record highs, some have experienced a slight decline from those levels, ranging from 1% to 3%. For instance, Nvidia reached an intraday peak of $505.48 on Nov. 20, Microsoft hit a record high of $384.30 on Nov. 29, and Apple’s stock recently traded at $199.62 on Dec. 14, marking its highest price ever.

However, four out of the Magnificent Seven stocks have yet to return to their record levels. Amazon stock reached its peak at $188.65 on July 13, 2021. Presently, the shares are trading approximately 18.5% below this threshold. Similarly, Meta Platforms achieved a record high of $384.33 on Sept. 1, 2021 and remains $34 (9%) below that level. Lastly, Alphabet shares reached their peak at $151.55 on Feb. 2, 2022 and are now trading nearly 9% lower.

Despite these minor declines, the Magnificent Seven stocks have undeniably played a pivotal role in driving the market’s gain for 2023. Their exceptional performance and contribution to market capitalization stand as a testament to their significance in the investment landscape.

The Rise and Potential of Seven Major Stocks

By Evie Liu

Tesla, one of the leading players in the stock market, has faced its fair share of ups and downs. Once reaching an impressive peak of $414.5 on November 4, 2021, the stock plummeted by two-thirds before experiencing a recent recovery. As of Tuesday’s closing, Tesla shares sit at $257.22, still nearly 40% below their record high.

The “Magnificent Seven” stocks, consisting of Tesla, Amazon, Apple, Alphabet, Microsoft, Facebook, and Meta, have been the subjects of high investor interest. However, it remains uncertain whether these stocks will continue to rise in the near future. Currently, this group is traded at an average of 34 times their predicted per-share earnings for 2024. In comparison, the average for all S&P 500 stocks is 22 times.

Excitingly, there is still potential for growth in shares of Meta and Alphabet if they can attain predicted earnings growth. These stocks are currently priced at approximately 20 times their estimated 2024 earnings. On the other hand, Amazon and Tesla are already trading at 43 times and 68 times their respective earnings. Future gains for these two giants will heavily rely on investor confidence.

Nevertheless, it’s essential to remember that history has shown great feats are possible. Notably, Amazon once traded at an astonishing 64 times the expected earnings for the following year, while Tesla reached an astronomical 155 times.

In conclusion, the destiny of these stocks remains uncertain, but the potential for further growth is still present. It will ultimately depend on how these companies perform and investors’ confidence in their future successes.

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