Struggles at Tesla put traditional automakers' competition into question
In the realm of technology, the "Fabulous Seven" or "Magnificent Seven" have long been a dominant force, leading market gains in recent years. Traditionally, this elite club includes Amazon, Microsoft, Alphabet (Google), Meta, NVIDIA, Apple, and Tesla. However, recent market trends suggest a shift in focus towards newer growth stocks.
NVIDIA, a key top performer with exceptional returns over the past 20 years, remains a dominant force within the group. The company, virtually inventing the AI chip category, continues to be a confirmed member.
Amazon, another long-term top performer, is still a member but shows signs of lagging recent performance. Tesla, known for its visionary CEO, is not built on a brilliant platform like Apple's iOS, but its customer loyalty is noteworthy.
Meta, active in AI and metaverse investments, is seen as a part of this elite group, with strong buy ratings from analysts. The company leads in social media, a testament to its enduring strength.
Apple, Microsoft, and Alphabet (Google) are historically part of the group, but there is no direct mention of their status in the current period.
Interestingly, Tesla is not a part of the "Fabulous Seven" as commonly understood. The company's current valuation is around one trillion dollars, but its special status as a trailblazer in the electric vehicle industry may be diminishing as the car is now viewed as a mobile extension of digital lives.
The car's production growth for the second quarter of the year was 2%, following a 4% increase in the first quarter. However, concerns about safety have arisen, with Tesla's Model Y and Model S among the 25 vehicles with the highest fatality rates per kilometre driven, according to U.S. Department of Transportation data.
The shift in focus away from the "Fabulous Seven" towards other stocks could be due to the challenges faced by companies with vast workforces and sprawling production networks. It remains uncertain who will profit most from this shift, but it's clear that the landscape of the tech industry is evolving.
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- The landscape of the tech industry is evolving, as there is a shift in focus away from the traditional 'Fabulous Seven' towards newer growth stocks.
- NVIDIA, a key player in the AI chip category, continues to be a dominant force within the 'Fabulous Seven' group.
- Despite being a long-term top performer, Amazon shows signs of lagging recent performance in the 'Fabulous Seven'.
- Tesla's special status as a trailblazer in the electric vehicle industry has obtained it a place beyond the conventional 'Fabulous Seven', its valuation reaching around one trillion dollars.
- Although Alphabet (Google), Microsoft, and Apple are historically part of the 'Fabulous Seven', their current status in the ongoing period is yet to be directly addressed, leaving their position uncertain.
