Goldman Sachs noticed significant changes among leading technology companies, often referred to as the “Magnificent Seven”, 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. increased profits by 48% compared to last year.
This growth was supported by a 14% increase in sales and a 521 basis point increase in margins, resulting in a combined margin of 22.8%.
However, as the analysis showed, these general indicators mask differences in the fortunes of individual companies.
Meta Platforms, Alphabet and Amazon beat expectations with sales growth of 27%, 15% and 13%, respectively, leading to year-to-date share price increases of 34%, 25% and 21%. These achievements reflect the superior market performance of these companies compared to some of their peers.
In contrast, Apple’s sales fell 4% and Tesla’s revenue fell 9%. Consequently, this impacted their stock prices, with Apple shares down 1% and Tesla shares down 30%.
This decline caused Tesla’s ranking to fall to 12th place in the ranking of the world’s largest companies.
“The ‘Magnificent Seven’ moniker should be retired at the end of the first quarter,” Goldman Sachs analysts said in a note.
The report added that the wide range of performance highlights the diverse challenges and opportunities facing these industry leaders.
While some continue to expand and exceed market expectations, others are experiencing more challenging economic conditions.
NVIDIA’s upcoming results will add another piece to the puzzle of the current tech industry landscape.
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