Big Tech Takes A Hit: Can The Magnificent Seven Bounce Back?

This topic has 7 replies, 1 voice, and was last updated 3 weeks ago by Joe.

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March 19, 2025 at 11:15 #198254 Reply
Christian Harris
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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? 🤔📉

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- March 20, 2025 at 14:42 #198266 Reply
  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.
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  - March 21, 2025 at 11:04 #198309 Reply
    Christian Harris
    Participant
    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? 🤔📈
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  - March 21, 2025 at 11:44 #198316 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?
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  - March 21, 2025 at 17:56 #198351 Reply
    Christian Harris
    Participant
    I predominantly trade indices, so am buying up all these lovely dips.
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  - March 25, 2025 at 07:51 #198387 Reply
    Joe
    Nice. European and US indices?
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  - March 25, 2025 at 11:11 #198415 Reply
    Christian Harris
    Participant
    S&P 500, Nasdaq-100 and FTSE 100. Occasionally Dow Jones and DAX 40, too.
    
    Do you trade indices Joe?
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  - March 26, 2025 at 16:53 #198460 Reply
    Joe
    A little bit of US and UK indices but never seen great returns if I’m honest.
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