Alphabet

David

Strong

Gains

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">Following a recent <a href="https://tokenist.com/the-sp-500-is-down-10-since-august-as-the-magnificent-seven-struggle/" rel="noopener noreferrer nofollow" class="deco-link">sell-off in the wider</a> market, the benchmark S&amp;P 500 saw a significant rebound over the past week, driven by a generally strong Q3 earnings season. As a result, the dominance of the ‘Magnificent Seven’ firms increased even further, now <a aria-label="representing over 70% (opens in a new tab)" href="https://www.morningstar.com/stocks/how-have-magnificent-seven-earnings-been-looking" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">representing nearly 70%</a> of S&amp;P 500’s gains in 2023.&nbsp;</p>
<h3 id="sp-500-rebounds-as-magnificent-seven-companies-excluding-tesla-post-strong-earnings">S&amp;P 500 Rebounds as Magnificent Seven Companies, Excluding Tesla, Post Strong Earnings</h3>
<p>Earlier this year, the <a href="https://tokenist.com/most-of-sp-500s-gains-driven-by-7-firms-others-up-less-than-5-ytd/" rel="noopener noreferrer nofollow" class="deco-link">Tokenist reported</a> on how the seven biggest tech giants listed in the US, also known as “The Magnificent Seven,” accounted for more than 50% of the S&amp;P 500 gains in 2023 amid the ongoing AI boom.</p>
<p>Following a series of positive earnings results over the past few weeks, the stock prices of companies witnessed a fresh boost, taking that number to almost 70%, according to Morningstar analysts.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“Six of the Magnificent Seven have reported earnings, and they’ve been decidedly mixed,” he says. “Amazon, Meta, and Microsoft each reported better-than-expected results, hitting on all cylinders, and provided the market with a strong outlook. For these stocks, we increased our fair value estimates by 3% on average.”</p> <cite>– said David Sekera, Morningstar’s chief US strategist.</cite>
</blockquote>
<p>Tesla (NASDAQ: $TSLA) was the only company that failed to impress with its latest quarterly report, with the electric vehicle (EV) maker <a href="https://tokenist.com/bernstein-keeps-tesla-pt-at-150-says-its-looking-like-a-regular-auto-company/" rel="noopener noreferrer nofollow" class="deco-link">missing earnings and revenue estimates</a> and posting a sharp drop in total operating margins.&nbsp;</p>
<p>Google owner <a aria-label="Alphabet beat estimates (opens in a new tab)" href="https://www.cnbc.com/2023/10/24/alphabet-googl-earnings-q3-2023.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Alphabet (NASDAQ: $GOOGL) beat estimates</a> for earnings and revenue for its fiscal third quarter but witnessed a sharp stock price drop anyway as investors expected more from the company’s cloud and AI operations. Nevertheless, positive corporate numbers in the broader market drove the S&amp;P 500 5% higher over the past week.</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p>
 </div>
</div>
<h3 id="nvidia-s-q3-earnings-expectations">Nvidia’s Q3 Earnings Expectations</h3>
<p>Meanwhile, the only Magnificent Seven company that hasn’t reported its latest earnings yet is Nvidia (NASDAQ: $NVDA), with the chipmaker set to reveal its results on November 21.</p>
<p>Following two monster reports this year, the AI and chip giant is estimated to report earnings per share (EPS) of $3.16 in the current quarter on revenue of $15.19 billion, <a href="https://finance.yahoo.com/quote/NVDA/analysis?p=NVDA" target="_blank" aria-label="per Yahoo Finance data (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">per Yahoo Finance data</a>. Meeting those numbers would mark a significant increase compared to the year-ago quarter when Nvidia posted adjusted EPS of $1.17 on revenue of $7.1 billion.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“Expectations are exceedingly high for growth in its artificial intelligence business, and depending on its results, the stock could be in for a wild ride.”</p> <cite>– Sekera added.</cite>
</blockquote>
<p>The company’s shares soared roughly 215% in 2023 thanks to its vital role in the ongoing tech sector craze marked by generative AI solutions like ChatGPT. Last week, reports revealed that Nvidia may be forced to cancel $5 billion worth of AI chip orders to China due to recent export controls imposed by the US government.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you think the recent surge in the S&amp;P 500 was a temporary relief rally? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/70-of-the-stock-market-gains-this-year-come-from-the-magnificent-seven/">70% of the Stock Market Gains this Year Come from the Magnificent Seven</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

70% of the Stock Market Gains this Year Come from the Magnificent Seven

Table of Contents

Tokenist

Other articles published on Nov 6, 2023

Analyst Says Bitcoin's Rally Is Not Over, Announces Catalysts That Will Continue the Rise!

SushiSwap Surges 80%, This Cohort Joins The Party

XRP Whales Are Responsible for This 23% Price Increase, But There's More

SEC vs. Ripple: The Govil Ruling That’s Shaking the Case”

Investors Moving XRP off Exchanges, Trends Suggests This New AI Crypto Could 50X

The Most Common Types of Cyberattacks and How to Avoid Them 🚨🔐

Join our free newsletter for daily crypto updates!