Market Musings 030224:

The Magnificent Seven meets The Good, the Bad and the Ugly.

Without doubt, one of the major features or highlights of the last week has been the strength of certain of the largest technology stocks in the US - namely the so-called Magnificent Seven.

In the past week, some corporate results have grabbed the headlines with amazing performance, far better than predicted by analysts, such as of course Meta.

Meta has quadrupled from the late 2022 low



But, then there have also been disappointments from others, notably the massive vehicle recall that has been that Tesla has been obliged to enact in the US, involving something like 2 million Tesla cars.

The Magnificent Seven, as they call the largest tech stocks in the US, have delivered pretty much all of the performance of the benchmark S&P 500 index in the US not only last year, but equally over this month of January. But now, this group of seven is finally starting to splinter.

Mega-Cap tech has dominated, while the average S&P 500 stock has done relatively little



The Leaders: Meta, Nividia and Amazon

Ultimately, some of the Magnificent Seven, such as Meta and Amazon. continue to perform incredibly well. They are going to see profit upgrades thanks to their stellar profit performance in the latest Q4 reporting period.

Meta and Nvidia lead this year, then Amazon and Microsoft



Putting the Meta share price jump in context

Meta released amazingly strong quarterly results (Q4 2023) this last week, including the surprise announcement of the payment of a maiden dividend.


Source: CNBC

In reaction to these blowout quarterly results, its stock value subsequently rose in one day by $197 billion now, an unimaginably big number. In fact, it's the largest one day gain in terms of value of any stock ever in the world eclipsing the previous record which had been set previously by Apple and Amazon in 2022.

This puts the total market value of Meta today at $1.2 trillion. But what does $197 billion represent?

To give you some…

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