Nvidia, after gaining $2.1 trillion YTD through July 10, gave up $418 billion or 12.6% since. Meta -13.6% in 5 days. Tesla should be kicked out of the Mag 7.
By Wolf Richter for WOLF STREET.
These numbers are just crazy when you actually think for one second about it: Since the high on July 10, over those five trading days, the Magnificent 7 – Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla – have lost $1.13 trillion in market capitalization. If that happened in Commercial Real Estate over a 12-month period it’s considered a massacre, calling for bailouts and rate cuts and whatnot. Here it’s just kind of a blip.
From the beginning of this year through the peak on July 10, the Mag 7 gained $5.0 trillion in market cap, exploding from $12 trillion to $17 trillion in less than seven months. $5 trillion is about the size of the entire debt of US Commercial Real Estate, all sectors of it combined, that’s now causing such headaches. And these seven stocks gained $5 trillion in less than seven months and then gave up $1.13 trillion in five days, and it’s of course no big deal because easy come, easy go, and it’s just a blip, and trillions don’t even matter here anymore.
In percentage terms, the Mag 7 gained 41% from the beginning of 2024 through the high on July 10, and then gave up 6.6% of their market cap in five days, no biggie, including the 3.2% drop today, the biggest so far this year:
Nvidia had gained the most (+172%), or $2.1 trillion YTD through July 10. But then its shares dropped by 12.6% over the past five days, including the 6.6% drop today. Its market cap dropped by $418 billion. In other words, it has given up 20% of that $2.1 trillion gain this year over the past five days. Easy come, easy go. No biggie.
Nvidia was briefly the most valuable stock in the universe. Today, with a market cap of $2.9 trillion, it was kicked out of the $3-trillion club, and has now dropped to third place, below Apple ($3.5 trillion) and Microsoft ($3.3 trillion).
The combined market cap of Apple, Microsoft, and Nvidia dropped by $650 billion in five days, and has now fallen below $10 trillion after the drop today, to $9.7 trillion, from $10.4 trillion on July 10.
Tesla gained the least this year through July 10 (+6.3%). And then, shares dropped 5.6% over the past five days and gave up all their gains of this year and are back where they’d started out the year.
It was kind of a funny year for Tesla. The stock fell hard for the first four months of the year, but since late April turned around and soared by 85% through the peak on June 10, before falling back, and today ending up where it had started the year.
Tesla doesn’t even belong into this lineup: It had been left behind. Its shares today at $248.49 are 40% below its all-time high of $414.50 in November 2021. It should be kicked out of the Mag 7.
Meta was up 49% in 2024 through July 10, but then lost the most of the Mag 7 over the past five days in percentage terms (-13.6%), including 5.7% today. In dollar terms, it lost $184 billion, the second-most behind Nvidia, after having gained $447 billion in 2024 through July 10.
If the Mag 7 combined market cap drops another 25% from today over the next x months, or by another $4 trillion – I mean, what’s a few trillion among friends – it would just bring the market cap back to the beginning of 2024. That kind of $4 trillion drop, after the $1.1 trillion drop over the past five days, would be the hugest loss ever for seven stocks in dollar terms, but it would just unwind six months of gains.
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