Meta and Amazon stocks rose, while Tesla fell due to unique challenges

From Nasdaq: 2024-04-05 14:30:31

The “Magnificent Seven” group of stocks, known for their industry-leading positions and ties to AI, has seen a divergence in performance in 2024. Meta Platforms (NASDAQ: META) and Amazon (NASDAQ: AMZN) rose, while Tesla (NASDAQ: TSLA) fell. Meta responded to FTC allegations, Amazon cut jobs, and Tesla slashed prices. Each company faces unique challenges impacting their stock performance.

Investors are closely watching Meta Platforms’ response to FTC allegations and how Amazon is cutting costs by reducing jobs and replacing technology in its stores. Tesla’s decision to slash prices and abandon plans for a lower-priced model has negatively impacted its stock performance. Each company’s strategic moves and external challenges are affecting investor sentiment and stock prices.

The “Magnificent Seven” stocks, including Meta, Amazon, and Tesla, have shown varying performance in 2024. Meta and Amazon are outpacing the S&P 500, while Tesla is lagging due to challenges such as inventory management and price adjustments. Valuation metrics also indicate differences among the trio, with Meta being the cheapest in terms of forward earnings multiples. Investors are closely monitoring these stocks’ performance and potential for future growth.

For investors considering Meta Platforms, it’s essential to note that the company was not among the “10 best stocks” identified by Stock Advisor analysts. Stock Advisor offers guidance on portfolio building and stock selection, with a track record of outperforming the S&P 500. Factors such as leadership changes and strategic decisions may impact Meta’s future performance and investor returns. Consider these insights before investing in Meta Platforms.



Read more at Nasdaq: Why “Magnificent Seven” Stocks Meta and Amazon Rallied Today, While Tesla Stock Tapped the Brakes