‘Magnificent Seven’ Losses Approach $3 Trillion Amid Weeks-Long Selloff

The U.S. tech sector took a massive hit Monday, with the so-called Magnificent Seven stocks some of the day’s biggest decliners.

The S&P 500 recorded its worst day since September 2022 on Monday, falling 3%. Monday’s selloff is the latest in a string of bad days for markets. Stocks have tumbled several times in recent weeks amid concerns about a weakening U.S. economy and overbought tech stocks.

Combined, the Mag Seven have shed nearly $3 trillion in market capitalization since early July when most of the group traded at record highs.

Nvidia

Nvidia (NVDA) shares were especially pressured Monday amid reports that its Blackwell system, including next-generation artificial intelligence (AI) chips, could be delayed three months or more, per The Information. Design flaws are a driving factor behind the delay, the report said, citing anonymous sources close to the company. 

Nvidia shares fell 6.4% Monday, putting them more than 25% below their recent highs. The slump has wiped about $845 billion from the chipmaker’s market capitalization. 

Microsoft

Microsoft (MSFT) fared slightly better than most of its Mag Seven peers Monday, declining 3.3%. Still, the stock has been hit in recent weeks by concerns about surging AI spending. Plus, Microsoft last week reported cloud revenue of $36.8 billion, short of the $37.2 billion that analysts anticipated.

Since hitting an all-time high of $467.56 on July 5, the firm’s shares have slid more than 15%, erasing $540 billion from its market cap.

Alphabet

Alphabet (GOOGL; GOOG) helped spark one of the largest tech sell-offs this year when it reported that spending on AI infrastructure had surged in the second quarter and would remain high through 2025. Though unlike Microsoft, Google’s cloud revenue of $10.35 billion came in above analysts’ expectations.

The stock slumped 4.5% on Monday amid the broader sell-off and following a federal judge’s ruling that Google violated U.S. antitrust law by paying billions of dollars to make its search engine the default on smartphones. The company’s market capitalization has declined by more than $377 billion since July 10.

Apple 

Apple (AAPL) opened nearly 10% lower on Monday after Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) revealed over the weekend that it had reduced its stake in the company by nearly 50% in the second quarter. Berkshire slashed its Apple holdings by 13% in the prior quarter.

Apple’s stock rebounded to close down 4.8%. Still, the iPhone maker’s market cap has dropped more than $390 billion in the last three weeks. 

Amazon

Amazon (AMZN) stock tumbled nearly 9% last Friday after it missed quarterly revenue estimates and issued soft guidance. That overshadowed a 19% jump in Amazon Web Services cloud revenue, growth it expects to persist as demand for its AI services increases.

Amazon shares were swept up in Monday’s sell-off, shedding 4.1%. The company’s market cap has fallen about $410 billion from its recent high.

Meta

Meta Platforms (META) was a rare bright spot among the Magnificent Seven this earnings season. Its shares rose the day after it reported better-than-expected earnings and laid out how its AI investments are paying off.

“We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” CEO Mark Zuckerberg said.

Shares declined 2.5% Monday, the least of any Mag Seven stock. Though, its market cap has still declined $165 billion from its peak in early July.

Tesla 

Tesla (TSLA) is coming off a disappointing second-quarter earnings report that revealed profit declined by 45%, as the cost of AI projects rose and the average sale price of its vehicles fell. 

The electric vehicle maker’s shares slid 4.2% on Monday, bringing its total market cap loss since its recent peak to more than $200 billion.