Summary: Apple and Tesla, part of the "Magnificent Seven" stocks, underperform in first half of 2024.
From Nasdaq: 2024-06-30 04:30:00
In the first half of 2024, some of the “Magnificent Seven” businesses have underperformed, with Tesla leading the decline due to a recent drop in electric car sales. Apple has also faced challenges with weak iPhone sales, affecting its stock performance compared to the S&P 500 index.
Despite temporary setbacks, both Apple and Tesla offer promising growth opportunities in artificial intelligence (AI) that could drive long-term shareholder returns. Apple’s upcoming iOS 18 update with AI features is expected to boost iPhone sales, while Tesla’s expansion into the robotaxi market could lead to a significant revenue stream.
Wall Street analysts are optimistic about Apple, with sales growth projections for fiscal 2025 increasing. The launch of iOS 18 and the potential for double-digit revenue growth next year may drive the stock higher in the second half of 2024. Tesla’s recent shareholder vote to reinstate CEO Elon Musk’s performance award has removed a major uncertainty, allowing investors to refocus on the company’s growth prospects.
Tesla’s upcoming Cybercab unveiling in August signals a move into the robotaxi market, where analysts anticipate a shift in revenue sources. With a growing focus on AI capabilities, Tesla aims to have millions of cars in its robotaxi fleet worldwide, potentially leading to high-margin revenue streams. The success of Tesla’s robotaxi service could significantly impact the company’s profitability and stock valuation.
While Apple and Tesla face challenges in the short term, their AI-driven growth opportunities make them attractive long-term investments. Both companies have the potential to deliver strong shareholder returns, especially with upcoming product launches and strategic initiatives in the AI space. Investors should consider these stocks for their potential to outperform over the next few years.
Read more at Nasdaq: Halfway Into 2024: 2 Underperforming “Magnificent Seven” Stocks to Buy Before They Take Off