April 14, 2024

The so-called “Magnificent Seven” stocks had a good run.

But Apple and Tesla’s continued misfortunes mean they’ve underperformed their Big Tech rivals. Mike O’Rourke, an analyst at Jones Trading who claims he coined the moniker representing Google, Meta, Nvidia, Amazon, Amazon, Apple, and Tesla said at the end of February that the cohort of tech brands is no more, even as others continue to affectionately use the “Mag Seven” tagline.

Apple and Tesla shares are down year-to-date, while the four others continue to show gains. Tesla is the worst performer of the group, showing both a 30% year-to-date stock decline and a year-over-year slump of 7%.

In fact, Tesla is the worst-performing stock in the S&P 500 as the company faces slowing EV demand and rising competition in China. Meanwhile, Apple is still up year-over-year (9%), despite the fact that it’s down in 2024 so far. The Tim Cook-helmed company is dealing with blowback from regulators both at home and abroad over its anti-competitive practices.

A brief history of Wall Street’s market monikers

🧛 FANG. Created by CNBC television host Jim Cramer, this 2013-era acronym accounted for high-growth tech stocks Facebook, Amazon, Netflix, and Google. Cramer added Apple in 2017, giving the “a” a little more emphasis: FAANG.

🍼 MAMAA. After Facebook was rebranded as Meta, and Netflix stopped doing so hot, MAMAA became a thing: Meta, Apple, Microsoft, Amazon, Alphabet (Google’s parent company). Next came the Magnificent Seven.

🔢 The Fab Five? Now, some have said the Magnificent Seven should be the “Fabulous Five,” dropping Apple and Tesla. Others believe even more companies should be cut from the all-star team, making it instead the “Terrific Two” couplet of Meta and Nvidia, which have rallied the most over the last year.

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