---
title: "‘From Magnificent to Maleficent,’ Says Raymond James About These Seven Tech Giants"
description: "The \"Magnificent Seven\" tech giants—Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia—are facing significant challenges, losing a collective $2.5 trillion in market value year-to-date. Their"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/237781930.md"
published_at: "2025-04-28T06:02:38.000Z"
---

# ‘From Magnificent to Maleficent,’ Says Raymond James About These Seven Tech Giants

> The "Magnificent Seven" tech giants—Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia—are facing significant challenges, losing a collective $2.5 trillion in market value year-to-date. Their earnings growth is slowing, with a projected 16% rise in profits for 2025, down from 37% in 2024. Ongoing risks, including competition and trade tensions, weigh heavily on their stocks. Despite these struggles, some analysts remain hopeful for recovery, with Nvidia and Amazon showing potential upside. Upcoming earnings reports will provide further insights into their performance.

The “Magnificent Seven” tech giants, Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta (META), Tesla (TSLA), and Nvidia (NVDA), that once propelled the market’s bull run are now facing significant challenges. According to *Dow Jones Market Data*, all of these stocks are off to their worst start to the year since the 2022 downturn. Collectively, they’ve lost $2.5 trillion in market value year-to-date, with each stock down by more than 6.5%. Despite a brief rally last week, their ongoing troubles are causing unease among investors.

Raymond James’ market strategist Matt Orton summed up the situation, saying, “From Magnificent to Maleficent, it’s just become a massive challenge.” Indeed, the shine has worn off for these companies as they each face their own hurdles.

## **Tech Stocks’ Earnings Dominance in Jeopardy**

The rapid earnings growth that fueled the market’s rally is beginning to slow. According to analysts polled by *FactSet*, the Magnificent Seven will experience just a 16% rise in profits for 2025, down from the 37% growth in 2024. In contrast, they expect other S&P 500 companies to see a 7.8% profit increase, up from 5% in 2023.

For instance, Tesla reported a 71% drop in net income for Q1 due to a slump in automotive sales. The electric vehicle maker also faces mounting competition and controversy surrounding CEO Elon Musk’s role in government affairs. Meanwhile, Nvidia’s stock tumbled after the company warned of a $5.5 billion charge due to new export restrictions in China.

Also, Apple is struggling with weak iPhone sales and delays in rolling out AI improvements to its Siri voice assistant, which has raised concerns about its future growth. At the same time, Alphabet, the parent company of Google, is dealing with pressure on its core advertising business, particularly as new tariff-related changes weigh on its global operations.

## **Ongoing Risks Weigh on Tech Titans**

Beyond slowing earnings, the Magnificent Seven face ongoing risks that are weighing on their stocks. The rise of strong global AI challengers like DeepSeek has eroded confidence in U.S. tech dominance, while ongoing trade tensions, especially under President Trump’s administration, remain a challenge. Investors are also concerned about high valuations, with companies like Nvidia and Meta still trading at premiums despite recent drops.

Now with the tech-heavy Nasdaq Composite down 10% and the S&P 500’s (SPX) down 6% year-to-date, the market’s heavy reliance on these tech giants is increasing broader instability.

## **Will the Magnificent Seven Recover?**

Despite their struggles, investors remain hopeful that the U.S. tech sector can regain its dominant position. Michael Hartnett of Bank of America, who coined the term “Magnificent Seven,” believes the group’s competitive advantages and the strength of the U.S. financial system will ultimately draw investors back.

As he puts it, “At the end of the day, nobody wants to own bonds. There’s only so much gold and European equities or emerging markets. And so it’s almost by default, you go back to the U.S. equity market.”

For now, the losses of the Magnificent Seven serve as a reminder that even the largest and most promising stocks are not immune to current market uncertainties. With earnings reports from Meta, Microsoft, Apple, and Amazon due this week, investors will get a clearer picture of whether these companies can recover or if their challenges will continue to weigh on the market. Meanwhile, Nvidia’s quarterly results, scheduled for May 28, will offer additional clues about the group’s prospects.

## **Which Magnificent Seven Stocks Offer the Most Upside?**

Using the TipRanks’ Stock Comparison Tool for Magnificent 7 Stocks, analysts see the greatest upside in NVDA stock forecast, projecting a potential gain of almost 52%. Amazon follows with a forecasted 31% upside. Meanwhile, TSLA stock has a Hold consensus rating, largely driven by the stock’s recent slump.

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### Related Stocks

- [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md)
- [AMZN.US - Amazon](https://longbridge.com/en/quote/AMZN.US.md)
- [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md)
- [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md)
- [AAPL.US - Apple](https://longbridge.com/en/quote/AAPL.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
