[Christian Harris]

The ‘Magnificent Seven’ are having their worst quarter since 2022, with Nvidia, Apple, and Google each down over 14%, and Tesla plummeting a staggering 44%.

This tech rout is dragging the S&P 500 lower, as rising AI costs, economic uncertainty, and Trump’s tariffs weigh heavily on investor sentiment.

The sell-off reflects a broader shift away from Big Tech, as traders grapple with tariff risks and slowing growth.

For short-term traders, this could signal opportunities in oversold stocks or a pivot to defensive sectors. However, with volatility likely to persist, caution is key.

What’s your take—will the Magnificent Seven recover, or is this the start of a longer-term trend? 🤔📉

Reply

Topic

[Joe]

It’s a great question. For now I’m cautiously optimistic:

• Undervaluation opportunities: Some of these stocks are now considered undervalued. Meta, Amazon, Microsoft, and Alphabet are rated 4 stars by Morningstar analysts.
• AI potential: Despite challenges in the near term, the structural growth component remains pretty strong for this cohort, particularly in AI development.
• Historical resilience: These companies have shown the ability to bounce back from previous downturns.

Reply

[Christian Harris]

While near-term headwinds like economic uncertainty and regulatory scrutiny persist, their AI investments and structural growth drivers remain compelling.

Historically, these companies have demonstrated resilience during market downturns, often emerging stronger.

For investors, this could be a strategic entry point, especially as AI advancements and cloud infrastructure continue to drive innovation.

However, patience and a long-term perspective are key, as short-term volatility may persist.

Do you see this as a buying opportunity Joe, or are you waiting for more clarity? 🤔📈

Reply

[Joe]

Not just yet, I believe prices may fall further. I’m mostly focused on the defence sector at the mo because that’s where I see opportunity, especially in Europe.

What about you?

Reply

[Christian Harris]

I predominantly trade indices, so am buying up all these lovely dips.

Reply

[Author]

Replies