Only One Stock Among The ‘Magnificent 7’ Pack Currently Trades Below 200-DMA – No, It’s Not Apple

• Meta slipped below its 200-DMA after posting its Q3 results.
• META’s EPS fell to $1.05, far below the expected $6.70, due to a one-time non-cash tax charge of $15.93 billion.
• Overall, the Mag 7 Q3 earnings growth was the slowest since Q1 2023, FactSet analyst John Butters said.

As the year draws to a close and heads toward the holiday season, every ‘Magnificent 7’ stock is trading above its 200-day moving average (DMA), with one exception: META Platforms Inc. (META), the parent company of Facebook and Instagram.

META slipped below its 200-DMA after reporting third-quarter results on October 29 and has been unable to reclaim that level since. 

The tech giant posted a 26% jump in third-quarter revenue to $51.24 billion, beating both Wall Street expectations and its own outlook. However, earnings per share came in at just $1.05, far below the expected $6.70, due to a one-time non-cash tax charge of $15.93 billion, related to U.S. President Donald Trump's ‘Big Beautiful Bill’. Without that charge, EPS would have been $7.25, the company said.

Meta also raised its full-year expense forecast and increased its capital spending outlook for 2025, while guiding fourth-quarter revenue to between $56 billion and $59 billion.

The Rest Of The Pack

The Magnificent Seven tech giants all reported decent quarterly performances, though with varying challenges. Apple saw solid revenue and EPS growth, fueled by iPhone sales and services, while Microsoft benefited from cloud and AI initiatives.

Apple shares hit an all-time high of $288.61 last Wednesday on optimism about iPhone 17 series sales.

Alphabet’s revenue surged on digital advertising and cloud growth, and Amazon posted strong sales despite margin pressures from logistics. NVIDIA capitalized on AI demand, and Tesla delivered a revenue increase, but net income fell 37%.

A Slowdown Looming?

Overall, the Mag 7 posted third-quarter earnings growth of 18.4%, marking their slowest pace since the first quarter of 2023, according to FactSet analyst John Butters. Investor reactions were muted, as rising capital expenditures and margin pressures tempered enthusiasm.

Earlier this week, Yardeni Research urged investors to scale back their exposure to the market’s powerhouse Mag 7, a notable shift after 15 years of bullishness toward mega-cap tech stocks. The firm recommended moving the group underweight, expecting the drivers of earnings growth to broaden beyond the sector.

Founder Ed Yardeni cautioned that the Mag Seven’s unusually high profit margins are attracting more competitors. “We see more competitors coming for the juicy profit margins of the Magnificent 7,” he said.

How Did Stocktwits Users React?

Retail sentiment for Roundhill Magnificent Seven ETF (MAGS) on Stocktwits remained in the ‘bearish’ zone over the past 24 hours.

At the time of writing, MAGS was down 0.3%, having gained around 23% so far this year.

NVIDIA (0.2%), Tesla (0.3%), Apple (0.1%), and Amazon (0.1%) traded higher, while Microsoft (-1.68%), Alphabet (-0.6%), and META (1%) traded lower in premarket.

Except for Amazon.com Inc. (AMZN), every member of the “Magnificent Seven” has gained more than 10% so far this year, with Nvidia (NVDA) up 36% and Google-parent Alphabet (GOOG) soaring 66%.

See also: MIND Stock On Track To Break Below 200-DMA After Q3 Miss Sends Shares Tumbling Nearly 25%

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