Why Are Tesla, Apple, and Alphabet Underperforming the “Magnificent Seven” and the S&P 500?
From Nasdaq: 2025-06-28 06:15:00
The S&P 500 has recovered its losses and is up nearly 4.4% year to date. Some mega-cap tech companies, like Meta Platforms, Microsoft, and Nvidia, are thriving, while others like Tesla, Apple, and Alphabet are struggling due to a lack of AI advancements. Tesla’s recent robotaxi event showcased progress in self-driving cars, but its core business remains weak. Apple and Alphabet also lag behind in AI innovation, impacting their stock performance.
Investing $1,000 in the top stocks right now is a hot topic. Growth stocks like Tesla, Apple, and Alphabet are facing challenges due to their AI strategies. These companies may require longer-term bets on self-driving cars and robotics to see significant growth. Tesla’s recent stock pop after the robotaxi event shows investors are looking for future potential.
Apple and Alphabet have more reasonable valuations compared to Tesla and generate free cash flow for reinvestment. Apple’s upcoming product launch in September may boost investor confidence, while Alphabet’s services segment, led by Google Search, remains strong. Tesla, Apple, and Alphabet are seen as potential long-term investments despite current underperformance.
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The author’s views and opinions emphasize the performance of top tech stocks like Tesla, Apple, and Alphabet. These companies face challenges in AI adoption, affecting their stock performance. The article highlights potential investment opportunities in top-performing stocks and the benefits of long-term investment strategies.
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