From "Faith in the Magnificent Seven" to "Let Performance Speak": US Stocks Face Life-or-Death Earnings Reports Next Week

Glonghui, January 25｜Over the past three years, the so-called “Magnificent Seven”—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—have led the stock market higher. However, this trend reversed at the end of 2025, as Wall Street began to question the hundreds of billions of dollars these companies have spent on developing artificial intelligence and when those investments might yield returns. An index tracking the Magnificent Seven hit a record on October 29, but since then, the share prices of five of these companies have fallen and lagged behind the S&P 500. During this period, only Alphabet, with nearly a 20% gain, and Amazon have maintained an upward trajectory. Darrell Cronk, Chief Investment Officer of Wells Fargo Wealth & Investment Management, stated: “Tech stocks have become a ‘show me’ story. If the big tech companies continue to deliver strong results, I think capital will flow back into the tech sector.” Next week, Microsoft, Apple, Tesla, and Meta will release their earnings reports, which will offer insights into the health of industries from cloud computing and electronic devices to software and digital advertising.