Why Two of the Magnificent Seven Stocks Crashed

terms. Negative publicity hurt Apple (AAPL) shares, which fell by 2.84%. Tesla (TSLA), last year’s clean energy darling, lost 27% YTD.

Apple sentiment worsened further when markets realized that the iPhone giant did not have a generative artificial intelligence solution. Moreover, China’s worsening real estate contagion likely hurt demand for consumer goods.

Counterpoint Research tried to claim that Huawei took Apple’s iPhone market share. However, all device firms are likely facing weak sales in China. Real estate prices account for most of the Chinese people’s savings. To offset losses, they are spending less.

Tesla added to the negative news coverage around the firm on Tuesday. It halted production in Germany after Vulkangruppe, an environmental organization, may have committed arson at a Tesla Gigafactory.

The downtrend in TSLA stock started on Dec. 29, 2023. It will not reverse until the company stops cutting vehicle prices. It might recharge brand interest with new product releases. However, risks are high that the Cyber Truck launch will not offset the falling demand for its core EVs.

Among the magnificent 7, Microsoft (MSFT) and Amazon (AMZN) shares remain strong. Alphabet (GOOG) is falling sharply. Shareholders are growing increasingly worried that Google does not have an AI product that will keep its users on the Google search platform.

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