Mag 7 stocks, often referred to as the “Magnificent Seven,” are a select group of stocks from highly reputed, large-cap companies. These companies are typically industry leaders, boasting stable earnings, robust market presence, and strong brand equity. Their solid financials and consistent performance history make them notable in the investment community. Mag 7 stocks are considered bellwethers in their respective industries, often setting standards for operational excellence and innovation.
Investing in Mag 7 stocks carries the advantage of relative stability and reliability. These stocks are generally known for less volatility compared to the broader market, making them a preferred choice for conservative investors. They often offer regular dividends, contributing to a steady income stream. However, there are disadvantages as well. The large size and established nature of these companies may limit their growth potential compared to younger, more agile firms. Additionally, due to their significant market capitalization, any major market shifts can heavily influence their stock prices.
For investors, Mag 7 stocks can provide a solid foundation in a diversified portfolio, especially for those seeking long-term, stable growth. However, a prudent investment strategy would involve balancing these holdings with other assets to cater to different risk and growth profiles. Taking all of this into consideration, here are two mag 7 stocks to watch amid earnings in the stock market now.
Mag 7 Stocks To Buy [Or Avoid] Now
- Microsoft Corporation (NASDAQ: MSFT)
- Amazon.com, Inc. (NASDAQ: AMZN)
Microsoft (MSFT Stock)
Starting our list off is Microsoft Corporation (MSFT). This multinational technology company is best known for its software products. This includes the Microsoft Windows operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company has also expanded into cloud computing (with Azure), gaming (through Xbox), and hardware with products like the Surface line of tablets.
Microsoft is set to report its most recent quarterly financial results this week, Tuesday, after the U.S. stock market closes. To briefly recap, last quarter, Microsoft notched in an EPS of $2.99 per share, with revenue of $56.52 billion for Q1 2024. During the previous quarter conference call, Microsoft said it estimates Q2 2024 revenue in the range of $60.40 billion to $61.40 billion.
Meanwhile, since the start of the year, shares of Microsoft stock have jumped higher by 9.51%. Additionally, during Monday’s late morning trading session, MSFT stock is trading green up 0.59% on the day so far, trading at $406.30 a share.
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Amazon (AMZN Stock)
Next up, Amazon.com, Inc. (AMZN) is a multinational technology company. Amazon is primarily known for its e-commerce platform. Additionally, Amazon has diversified its business to include cloud computing services (AWS), digital streaming, artificial intelligence, and more.
Moreover, this week, on Wednesday, Amazon will report its fourth quarter 2023 financial results. Diving in, the company will release its Q4 2023 financial results after the close of the U.S. stock market. Last quarter, Amazon posted a beat, notching in an EPS of $0.85 and revenue of $143.08 billion.
In 2024 so far, shares of Amazon stock have moved higher by 6.14% year-to-date. Continuing, during Monday’s late morning trading session, AMZN stock is trading flat on the day thus far at $159.16 a share.
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