As Tesla, Apple Slide, Peter Schiff Sounds Alarm On Magnificent Seven Stocks: 'Calls Into Question The Prospects For The Other Five'

Peter Schiff expressed skepticism about the performance of certain high-profile stocks like Tesla Inc. TSLA and Apple AAPL among the “Magnificent Seven.”

What Happened: On Thursday, Schiff specifically highlighted Tesla and Apple, noting their decline as potential indicators of issues for the remaining five stocks in the group — Microsoft MSFT, Nvidia NVDA, Alphabet GOOG GOOGL, Amazon AMZN and Meta Platforms META.

“Tesla, a Magnificent Seven stock is down 46%. That’s not so magnificent for those who bought near the top. Apple, another Mag 7 stock, is down 14%. So if one Mag 7 stock is in a bear market and another is in a correction, that calls into question the prospects for the other five,” he wrote on X.

See Also: Tesla Worst Performing S&P 500 Stock Year-To-Date: Analyst Warns More Trouble Ahead With ‘Slower EV Demand

Why It Matters: Tesla’s stock has been on a downward trajectory, with long-time investor Ross Gerber suggesting that a change in leadership or a shift in CEO Elon Musk’s focus could help reverse the decline. This sentiment echoes the broader market’s challenges and Tesla’s underperformance as the worst-performing stock in the S&P 500 year-to-date.

Tesla’s stock has plummeted by over 36% since the start of the year, impacted by disappointing earnings and a lackluster product lineup.

Analysts are warning of more trouble ahead due to slower EV demand. The S&P 500 Index, meanwhile, has been reaching new highs, surpassing the 5,000 level in 2024.

Meanwhile, Dan Ives of Wedbush expressed optimism about Apple despite recent stock downturns. Talking to Bloomberg Surveillance, Ives highlighted the tech giant's potential in the AI race, suggesting the current dip in Apple's stock could be a prime buying opportunity rather than a sign of lasting trouble.

On Thursday, Tesla’s stock closed at $162.50, a decrease of 3.88% from the previous close, reflecting investor concerns and market volatility, while Apple closed at $173.37 as per Benzinga Pro.

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