The Magnificent Seven

The market has taken a beating over the past couple of weeks due to headwinds in the bond department and significant geopolitical events. Although the much anticipated Magnificent Seven (Apple Inc. AAPL, Microsoft Corp. MSFT, Alphabet Inc. GOOGL, NVIDIA Corp. NVDA, Tesla, Inc. TSLA, Meta Platforms, Inc. META, Amazon.Com, Inc. AMZN) Q4 earnings report is finally here. Tesla and Netflix NFLX kicked things off last week, and after Elon spoke in a very hawkish manner during the earnings call, the stock plummeted to lows not seen since Q2 of this year. Elon's remarks sent EV stock sentiment down due to his concerns for the economy. On the other hand, Netflix had a blowout earnings report, sending the stock up more than 10%! Now, yes, we know Netflix is not a part of the Magnificent Seven, BUT it is a part of FAANG, and with it commonly grouped with 80% of the Magnificent Seven, it can easily affect their earnings sentiment. So, it leaves six more to go for the magnificent seven, with Google and Microsoft reporting this afternoon, Amazon and Meta later this week, and Apple and Nvidia within the next few weeks. It is our speculation, but based on our analysis of the four reports this week, Google, Microsoft, Amazon, and Meta should all beat earnings. This is a bold prediction, but based on analyst sentiment over the past three months, we expect them all to perform on their earnings report. 

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