Big Tech’s Grip on Market Shows Cracks as Earnings Fall Flat
- Magnificent 7 earnings reports have had muted stock reactions
- Weakness in tech stocks weighs on the broader market
Wall Street projections for profits in the current quarter have ticked lower for most of the so-called Magnificent Seven companies over the past month.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
The case for buying pricey Big Tech stocks on the assumption that profit growth is poised to re-accelerate is starting to look shaky.
With reports now in from all but Nvidia Corp., earnings for the group have been better than initially expected but that hasn’t stopped the stocks from lagging the broader market. The problem? Profit outlook has gotten murkier as companies like Amazon.com Inc. and Alphabet Inc. spend lavishly on artificial intelligence and tariff and US policy risks loom over Apple Inc. and Tesla Inc.