The Magnificent 7 stocks are seeing stunning declines
The Mag 7 has been crushed on cash flow concerns.
Long known as the Magnificent 7 stocks, shares of Apple ( AAPL ), Microsoft ( MSFT ), Nvidia ( NVDA ), Amazon ( AMZN ), Tesla ( TSLA ), Meta ( META ) and Google ( GOOG ) are acting anything but, especially compared to their 52-week highs.
Meta and Alphabet are effectively in bear markets, down more than 20% from their 52-week highs, as the Yahoo Finance AlphaSpace graphic shows below. Tesla is off by 19.2%, Amazon by 15.1%, and AI chip darling Nvidia by 12.2%.
Meta, Alphabet, Amazon and Tesla have been crushed following their earnings reports that showed pressured free cash flow amid aggressive AI spending. Nvidia is down because of the fear that all of these hyperscalers are overspending and will be forced to pull back in 2027.
Apple and Microsoft are the only Mag 7 names hanging tough, for company-specific reasons.
Microsoft managed to show positive free cash flow this week alongside strong Azure sales growth. Apple isn't being viewed as an AI play. It's seen more as a cash-rich play rolling out new hardware in the iPhone and Mac realms.
"There is too much weakness in tech for the market to ignore," BTIG strategist Jonathan Krinsky said.
Too much weakness in seven of the most important stocks in the world for the market to ignore is more like it.
Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team.
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