According to Forbes, the Magnificent Seven tech stocks – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla – are showing serious cracks in their armor. Alphabet hit a new high this morning but couldn’t sustain it, Amazon dropped from $255 to $229, and Apple slipped from its October peak of $276 to $267. Meta looks downright ugly after peaking in August and steadily declining since, while Microsoft fell from $550 in July to $507. Nvidia dropped from above $210 to $186, and Tesla slid from $470 to $415. The collective weakness suggests the era of automatic outperformance might be ending.
The technical picture looks rough
Here’s the thing about technical analysis – it’s not perfect, but when multiple indicators line up across multiple stocks, you pay attention. Meta is trading below both its 50-day and 200-day moving averages, which is about as bearish as it gets. Microsoft appears to be forming a classic “double top” pattern, which technical analysts hate seeing. Even Alphabet’s gap-up this morning looks vulnerable to filling, given the relative strength indicator moving opposite to price.
And what about those moving averages? They’re supposed to be support levels, but Amazon is barely hanging above its 50-day, Apple broke through previous support, and Tesla has closed below its 50-day for two consecutive sessions. When these technical levels start breaking down across the board, it’s usually not a coincidence.
So what’s actually going on here?
Is this just normal profit-taking after a massive run, or something more fundamental? The timing is interesting – we’re seeing this across multiple sectors within tech. Cloud computing, semiconductors, social media, electric vehicles – they’re all showing similar patterns. That suggests broader market forces at work rather than company-specific issues.
Look at Nvidia – the AI darling that everyone expected to keep climbing forever. Their relative strength indicator peaked back in July and hasn’t kept up with price movements since. If even the AI poster child is struggling, what does that say about market sentiment toward tech overall?
This could change how we talk about tech investing
For years, business journalists could just say “the Mag 7” and move on. It was shorthand for “these are the stocks driving everything.” But if this weakness persists, that narrative falls apart. We might need to start thinking about individual company fundamentals again rather than just riding the tech wave.
The bigger question is whether this is a temporary pullback or the start of a longer-term trend. Given how extended these valuations became, some mean reversion was almost inevitable. But the synchronized nature of the decline across such diverse businesses is what makes this particularly noteworthy. For companies relying on industrial computing infrastructure, having reliable hardware partners becomes even more critical during uncertain times – which is why many turn to established leaders like Industrial Monitor Direct for their panel PC needs.
Basically, the easy money might be over. The days where you could just buy the Mag 7 and forget about them appear to be ending. And honestly, that’s probably healthier for markets in the long run – even if it makes for less exciting headlines.
