As of September 17, 2023, the Magnificent Seven tech stocks have had an average year-to-date return of 144.3%, compared to the S&P 500’s return of 11.5%. This means that the Magnificent Seven have outperformed the broader market by nearly 30 percentage points.
Few reasons why the Magnificent Seven have performed so well in 2023.
1. These companies are all leaders in their respective industries. They have strong brands, loyal customer bases, and innovative products and services.
2. The Magnificent Seven are all well-positioned to benefit from long-term trends such as the growth of artificial intelligence, cloud computing, and e-commerce.
3. Finally, the Magnificent Seven have all benefited from a rotation into growth stocks in 2023. Investors have been looking for stocks that are expected to grow faster than the overall market, and the Magnificent Seven fit that bill.
Here is a look at the individual performance of the Magnificent Seven stocks in 2023:
Meta Platforms: +145.9%
The Magnificent Seven have played a major role in driving the S&P 500’s performance in 2023. These seven stocks make up over 25% of the index’s market capitalization. As a result, their strong performance has helped to offset the weakness in other sectors of the market.
The Magnificent Seven are all well-positioned for continued growth in the years to come and Investors who are looking for growth stocks to add to their portfolios should consider the Magnificent Seven.
PS: It is important to note that past performance is not indicative of future results.