The "Magnificent Seven" no longer trades as one block, as the average correlation among the group's stocks fell to its lowest level in more than a decade. Apple leads the group in 2026, while Tesla and Meta are down. Microsoft and Alphabet report results Wednesday, and Amazon follows Thursday.
The Magnificent Seven stocks are moving apart, which challenges investors to pick individual names rather than treat the group as a single trade. CNBC calculated the rolling 60-day correlation of daily returns for each of the 21 unique pairs in the group, and the average recently fell to its lowest level in more than a decade.
The group lags the S&P 500
The split has left the group behind the broader market. The Roundhill Magnificent Seven ETF (MAGS) is up 7% year to date, while the S&P 500 has gained 12%. Tesla and Meta are the only two names down in 2026, and Nvidia and Apple are the only ones outperforming the index.
Gil Luria, analyst at D.A. Davidson, said the companies all have different exposures to AI. Thomas DiFazio, ETF strategist at Roundhill Investments, said investors are focusing on each company's independent fundamental growth drivers. The dispersion does not point to deteriorating fundamentals, however, and Wall Street remains largely bullish on each stock.
Apple leads, Nvidia pulls back
Apple's 28% gain leads the group in 2026. In 2025, it was the second worst-performing name, returning 8.9%. Jay Woods, chief market strategist at Freedom Capital Markets, said the stock criticized the most over the last two years about not having an AI strategy is now the cohort's leader.
Nvidia has been volatile amid concerns about the durability of chip demand. Its shares peaked on Oct. 6 and have fallen by over 13% since. Woods still described its valuation as relatively and historically cheap.
Earnings test Microsoft, Alphabet and Amazon
Microsoft and Alphabet report results after the bell Wednesday, and Amazon follows after the close on Thursday. Woods identified the $530-$550 range as resistance for Microsoft. According to CNBC, upcoming earnings and guidance can help determine whether the stock can break above that range.
Meta turned negative after it reported negative free cash flow and raised the floor of its full-year capital expenditures in its third-quarter earnings. Tesla, in Woods's words, has been left in the dust, and Luria questions its place in the group.
Source: CNBC
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