Nvidia has jumped back above its 50-day moving average as it continues to etch a flat base with a 974 buy point. Google stock has shown resilience after gapping up on earnings and is now extended. Meta took a beating on April 24, dropping sharply below its 50-day line. Meanwhile, Tesla rose on earnings, sparking a push that has lifted it back above that benchmark. Amazon has also shored up support on strong earnings.
All of this has led to a shake-up in the ranking by market cap of the Magnificent Seven stocks.
Microsoft has eclipsed Apple stock in terms of market cap weighting on the Nasdaq. MSFT stock now accounts for 9.5% of the tech-heavy index, compared to 8.6% for the iPhone maker. At 6.9%, Nvidia has outmaneuvered Alphabet (6.6%) and also surpasses Amazon (6.2%). Meta has slipped to 3.6%.
The slides Apple and Tesla have dragged down their Composite Ratings. Apple stock has slipped to a 53, but shares gapped in big volume Friday on earnings.
Tesla stock got a boost on Monday as Elon Musk scored FSD wins on a China visit, lifting the EV maker’s Composite Rating from a lowly 28 to an improved 42. Tesla’s market cap weighting of 1.8% of the Nasdaq now ties that of Broadcom (AVGO).
Magnificent Seven Stocks News & Analysis
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What Are The Magnificent Seven Stocks?
Just as Wall Street moved on from the Nifty 50 in the 1970s as the term’s popularity and usefulness waned, the so-called FANG or FAANG stocks have lost their bite. Replacing them in the lexicon du jour is the Magnificent Seven Stocks: Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA).
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From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, the Magnificent Seven stocks account for around half of the weighting of the Nasdaq.
Unlike the price-weighted Dow Jones Industrial Average, the Nasdaq composite and S&P 500 indexes are market-capitalization weighted.
As a result, the combined market caps of the Magnificent Seven stocks have a disproportional influence on the Nasdaq composite and Nasdaq 100.
To help address this issue, the Nasdaq rebalanced the index on July 24. That reduced the individual weighting of the Magnificent Seven stocks. But the rebalancing simply changed the total weighting of these seven megacaps from over 50% to nearly 50%.
In short, the Nasdaq 100 remains heavily concentrated on these megacap growth stocks.
Top Funds Gorge On Nvidia, Meta And This Non-AI Sector
What Percentage Of Nasdaq Are The Magnificent Seven Stocks?
Here are the current individual market cap weightings of Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla. The weightings will, of course, change as their market caps fluctuate.
| Company | Symbol | Market Cap Weighting (%)* | Comp Rating* |
|---|---|---|---|
| Microsoft | (MSFT) | 9.5 | 82 |
| Apple | (AAPL) | 8.6 | 53 |
| Nvidia | (NVDA) | 6.9 | 99 |
| Alphabet Class C | (GOOG) | 6.7 | 98 |
| Alphabet class A | (GOOGL) | 6.6 | 98 |
| Amazon.com | (AMZN) | 6.2 | 93 |
| Meta Platforms | (META) | 3.6 | 97 |
| Tesla | (TSLA) | 1.8 | 42 |
*As of May 3, 2024 |
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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