Goldman Sachs has seen a significant shift among top technology companies, often called the “Magnificent 7,” following their first-quarter results.
Collectively, Apple Inc (NASDAQ:)., amazon.com Inc (NASDAQ:)., Alphabet (NASDAQ:) Inc., Meta Platforms Inc (NASDAQ:)., Microsoft Corporation (NASDAQ:), NVIDIA Corporation (NASDAQ:). ). and Tesla (NASDAQ Inc. saw profits increase 48% year over year.
This growth was supported by a 14% increase in sales and a margin expansion of 521 basis points, bringing the aggregate margin to 22.8%.
However, this overall performance masks the different fortunes of different companies, the analysis showed.
Meta Platforms, Alphabet and amazon exceeded expectations with sales growth of 27%, 15% and 13% respectively, leading to year-to-date share price increases of 34%, 25% and 21% . These gains reflect stronger market performance for these companies relative to some of their peers.
In stark contrast, Apple's sales saw a 4% drop, while Tesla saw a 9% drop in revenue. Consequently, their share prices have been affected: Apple shares fell 1% and Tesla shares fell 30%.
This downturn has led to Tesla's ranking dropping to 12th among the world's largest stocks.
“The 'Magnificent 7' moniker should be retired following first-quarter results,” Goldman Sachs analysts said in a note.
The report added that the wide dispersion in performance highlights the various challenges and opportunities facing these industry leaders.
While some continue to expand and exceed market expectations, others are experiencing more difficult economic conditions.
NVIDIA's upcoming results will add another piece to the puzzle of the current technology industry landscape.
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