Magnificent Seven Earnings Triple S&P Peers
Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA)the Magnificent Sevendrove an outsized 27.7% year-over-year earnings growth in Q1 2025, nearly triple the pace of the other 493 S&P 500 members, per FactSet.
These tech and consumer-electric stalwarts delivered robust profit gains: Nvidias AI-fueled data-center demand, Metas advertising rebound and Microsofts enterprise software sales all contributed to the groups standout performance. Meanwhile, Apples Services and Teslas regulatory credits lent further momentum. In contrast, the remaining S&P 500 companies posted single-digit growth, highlighting the Sevens market leadership.
Investors should care because this concentration means that overall U.S. market returns heavily depend on a handful of large-cap namesany profit miss from one could ripple through the benchmark.
With year-to-date share moves of TSLA (?12.1%), AAPL (?18.8%), NVDA (+5.5%), META (+14.7%), MSFT (+9.8%), AMZN (?5.3%) and GOOG (?11%), this cohorts performance will continue to dictate sentiment as the S&P 500 kicks off June.
This article first appeared on GuruFocus.
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