Apple and Tesla have underperformed the S&P 500, facing challenges and uncertainties

From Nasdaq: 2024-07-06 06:26:00

In 2023, the “Magnificent Seven” drove the S&P 500’s return, but in 2024, the spotlight is on the “Fab Five.” Apple and Tesla have lagged behind, with Apple’s shares up 15% and Tesla down 1%. Will these market leaders regain momentum or continue to trail the market?

Apple recently joined the AI trend with new features like Apple Intelligence at WWDC. This could drive device upgrades and app development on iPhone, potentially boosting services revenue. At 29.8 times forward earnings, Apple’s valuation is reasonable compared to peers like the Magnificent Seven. Is Apple a buy in 2024?

Tesla faces challenges with pricing pressure impacting sales and profits. Lower-cost competitors and macroeconomic headwinds have tested Tesla’s resilience. An event in August detailing Tesla’s robotaxi plans could impact investor sentiment, with high expectations for autonomous vehicles driving the stock’s valuation. Is Tesla a risky investment amid uncertainties in 2024?



Read more at Nasdaq: Apple and Tesla Are the Only “Magnificent Seven” Stocks Trailing the S&P 500 So Far This Year. Are They Worth Buying Now?