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Monday Apr 22 2024 12:26
5 min
Last week marked the worst-ever weekly loss for group of stocks collectively known as the Magnificent Seven — Nvidia, Meta Platforms, Amazon, Microsoft, Alphabet, Apple, and Tesla — as their collective market capitalizations plummeted by $950 billion.
Among these tech giants, Tesla shares saw the largest percentage drop for the week. However, Nvidia stock, along with Apple and Microsoft, were bigger contributors to the market-cap losses due to their greater individual valuations.
California-based chipmaker Nvidia emerged as the biggest loser in terms of market cap, shedding nearly $300 billion. This loss exceeded the total market capitalization of its rival, Advanced Micro Devices (AMD), which last stood at close to $237 billion.
Nvidia stock tumbled by 13.6% last week as the semiconductor sector faced intense pressure. The company also recorded its worst weekly performance percentage-wise since a 16.1% drop on September 2, 2022.
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Nvidia shares plunged 10% on Friday alone, marking their most substantial single-day percentage decline since March 16, 2020, according to Dow Jones Market Data. With the stock off by $85, it secured its largest one-day price decline on record.
Mizuho analyst Jordan Klein noted a broad “unwind of the entire sector” in chips, which has been "accelerating day by day,” according to comments cited by MarketWatch.
On Friday, Nvidia set a new daily record for itself with a $212 billion drop in market cap, surpassing its previous daily loss record of $129 billion on March 8, 2024.
It also recorded the second-worst daily loss of market value for any U.S. company in history.
At the time of writing on Monday, April 22, Nvidia stock was trading up 1.32% at $772.05.
Despite the recent losses, NVDA shares remain close to 54% up year-to-date (YTD) and have rocketed up by 182% on a 12-month basis.
In contrast, the benchmark S&P 500 index has risen by 4.15% YTD and 20.17% in the same respective timeframes.
Other notable losses included Apple, which saw a reduction of $178 billion in market cap, and Microsoft, which decreased by $169 billion.
All seven companies in the Magnificent Seven saw their stock prices decline last week. Tesla led the slide with a 14% drop, leading its market cap to decrease by $76 billion. This decline pushed Tesla below both Walmart Inc. and Exxon Mobil, ranking it as the 14th largest U.S. company — a position it has not held since January 2023.
E-commerce giant Amazon and Facebook parent company Meta Platforms also saw their market capitalizations dive last week, losing $118 billion and $68 billion respectively. Alphabet’s market cap fell by $41 billion.
The aggregate market-cap loss for the Magnificent Seven last week far surpassed the previous record loss of $872 billion, set in January 2022.
Multiple members of the Magnificent Seven are due to report earnings this week, with standouts including Alphabet, Microsoft, Tesla, Meta, and Amazon.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. Note, trading Cryptocurrency CFDs and spread bets is restricted in the UK for all retail clients.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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