The term ‘Magnificent 7’ should be retired after first quarter results: Goldman Sachs By Investing.com

Goldman Sachs observed significant shifts among the top technology companies, often referred to as the “Magnificent 7,” through 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:), Tesla ( NASDAQ:) Inc.’s revenue increased 48% year-over-year.

This growth was supported by a 14% increase in revenue and margin expansion of 521 basis points, resulting in gross margin of 22.8%.

However, analysis suggests that these overall performances hide the diverse fortunes of individual companies.

Metaplatform, Alphabet, and Amazon exceeded expectations with revenue growth of 27%, 15%, and 13%, respectively, and their stock prices are up 34%, 25%, and 21% year-to-date. These gains reflect the company’s stronger market performance compared to some of its peers.

In contrast, Apple’s sales fell 4% and Tesla’s sales fell 9%. As a result, the stock prices of these companies were affected, with Apple’s stock price plummeting by 1% and Tesla’s stock price plummeting by 30%.

This downturn caused Tesla’s ranking to drop to .

“The ‘Magnificent Seven’ name should be retired after first quarter results,” Goldman Sachs analysts said in a note.

The report adds that the wide dispersion of performance highlights the diverse challenges and opportunities facing these industry leaders.

Some continue to expand and exceed market expectations, while others navigate more challenging economic times.

The upcoming NVIDIA results will add another piece to the puzzle about the current landscape of the technology industry.