Odaily Planet Daily News: For most of the past three years, the so-called "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla) have led the stock market upward. However, this trend reversed by the end of 2025, as Wall Street began to question the trillions of dollars these companies are spending to develop artificial intelligence and when these investments will start generating returns. An index tracking the Magnificent Seven hit a record on October 29, but since then, five of the seven companies have seen their stock prices fall and underperform the S&P 500 index. During this period, only Alphabet and Amazon have maintained gains, with Alphabet's shares rising nearly 20%. Darrell Cronk, Chief Investment Officer of Wells Fargo Wealth and Investment Management, said, "Technology stocks have become a 'show me the results' story. If the big tech companies can continue delivering strong performance, I believe capital will flow back into the tech sector." Next week, Microsoft, Apple, Tesla, and Meta will report their earnings in succession, offering insights into the health of industries ranging from cloud computing and electronic devices to software and digital advertising. (Jinshi)
Big Tech Earnings Reports to Test Market Confidence in 2026
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Summary
Big Tech earnings reports will test market confidence in 2026, as the Magnificent Seven—Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla—once dominated the stock market. By late 2025, skepticism had grown over the returns from AI spending. Since hitting a record on October 29, five of the seven stocks have underperformed the S&P 500. Only Alphabet and Amazon have gained, with Alphabet up nearly 20%. Darrell Cronk of Wachovia said tech stocks are now a "show-me" story. Earnings reports from Microsoft, Apple, Tesla, and Meta next week will serve as a gauge for the sector's health. Traders are also keeping an eye on altcoins amid shifting market sentiment.
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