so-called magnificent 7 have led the stock market so far in 2023 but the companies hit a fork in the road in October with Amazon and Microsoft posting the only gains greater than 1% from the group yahu finances Josh Schaefer is here with the details Josh what's behind the Divergence yeah Kiko so when you take a look at the seven stocks and look at who gained and who lost over the last month you can pick out some pretty clear narratives from earnings right and what we've heard from these companies thus far so you see Amazon and Microsoft both up there they both told pretty positive Cloud stories to investors and they also sold Ai and how it's going to contribute to revenue early on very successfully to investors versus when you remember Google's results and generally speaking investors were a little bit disappointed in the AI piic at least for how quickly AI is going to contribute to revenues and then when you take a look at Tesla remember Tesla at times has been an AI story at least in the long run when you think about full self-driving but but zooming in on what's going on with Tesla right now there's just a lot of headwinds there the same could be said for NVIDIA those companies both have big short-term headwinds and concerns with investors so we see that AI narrative taking a little bit of a backseat to immediate returns but I also want to take a look at what's been happening with these stocks really just over the past couple months when you look at how far they've comeing they've come down off their highs it's been interesting to just see investors basically say valuations might have been too high for some of these companies when you look at how the Magnificent 7 is still valued compared to the S&P 500 a lot of investors had said you know valuations just might be too high right now they're starting to come down you wonder at what point people see an attractive entry point here for some of these stocks but overall it's been a little bit of a valuation story too when we think about the mag 7 and that runup we had to start 2023 at some point people are going to want to take profits and companies to take profits from companies like these stocks who have grown significantly this year indeed I mean they really have led the charge this year and of course yeah people are going to want to take their profits off there I appreciate you giving us that update our very own Josh schaer
