After a peak on December 16, the Nasdaq Composite – that follows almost every stock trade on the Nasdaq grant- has entered into a correction. The index drops around 9% to date and 13% compared to the peak of December.
Given that the Nasdaq composite is technically heavy, it is no surprise that many Big-admitted technical shares have followed a similar path this year. The “Magnificent Seven”, given a name to Apple (Nasdaq: AAPL)” Microsoft (Nasdaq: MSFT)” Nvidia (Nasdaq: NVDA)” Amazon (Nasdaq: AMZN)” Meta platforms (Nasdaq: Meta)” Alphabet (Nasdaq: Goog)(Nasdaq: Googl)And Tesla (Nasdaq: TSLA)Are all down year so far, except meta.
Metadata by Ycharts.
I don’t see a drop in the beautiful seven shares as a time to press the panic button. They have all experienced similar malaise, and with enough time they will probably experience them again at some point. If there is something, I see this as a time when investors can consider “discount” and buy shares on the dip.
I see the profession in almost every beautiful seven and would consider buying the dip on each. However, the only exception is Tesla shares, which I would personally stay far from now.
For the remaining six shares in the Magnificent Seven, there are growth engines and competitive benefits in their companies that make buying the dip attractive:
Apple is one of the most profitable companies in the world and has a growing service segment that quickly grows further than just the iPhone and other hardware.
Microsoft has a broad technical ecosystem that is essential for companies and the business community as we know it, and a strategic partnership with OpenAI gives it a leg in AI innovation.
Nvidia’s graphic processing units (GPUs) and other data center hardware are vital for developing the AI infrastructure that will develop in the near future.
Amazon went beyond e-commerce to become the leader in Cloud Computing and has an emerging advertising company.
Meta is a digital advertising giant and has invested heavily in his AI infrastructure to strengthen his company and bring his metaille vision to life.
Alphabet’s Google continues to dominate the search, its cloud company continues to pick up steam and YouTube remains the leader in digital video capacity and an emerging streaming power.
Of course these are simplified business analyzes, but I am more optimistic about each of their processes than those of Tesla.
Passenger electric vehicles (EVs) are good for most income from Tesla, and many of those sales come internationally. Unfortunately, the sale of Tesla has recently taken a hit abroad. The markets in China, Norway, Denmark, Sweden and Germany have experienced all sales drops in recent months.
Not only does the EV market become more competitive with international companies that release their own EVs (such as Byd in China and Volkswagen In Germany), but many of them are also cheaper. With similar performance in most cases it is not surprising that customers tend to the cheaper option.
The automotive turnover of Tesla in the fourth quarter of 2024 was around $ 19.8 billion (by 8% years on year), while the total turnover year by year increased by 2% to $ 25.7 billion. Investors certainly expected more from Tesla’s turnover, but the decrease of 23% in the operating result was alarming, and has continued his discouraging path in recent years.
TSLA Revenue (quarterly) data from Ycharts.
Even after having fallen by more than 42% this year, Tesla remains extremely expensive according to most standards. Looking at the ratio price win (p/e), it is definitely the most expensive stock from the beautiful seven-and it is not even in the area.
TSLA PE -RATIO (annual) data from Ycharts.
It would be difficult to justify investing in Tesla, while it is so expensive and profit growth has stalled. The other beautiful seven shares seem to have much more profit growth for them, and there are fewer questions about the futures of their companies.
When you invest in Tesla, you invest in a vision (which is not inherently bad), but you must be careful if there are so many questions and the shares are so expensive.
Have you ever had the feeling that you missed the boat to buy the most successful shares? Then you want to hear this.
In rare cases, our expert team of analysts gives one “Double Down” Recommendation for companies that they think is about to pop. If you are worried that you have already missed your chance to invest, this is the best time to buy before it is too late. And the figures speak for themselves:
Nvidia:If you invested $ 1,000 when we doubled in 2009,You would have $ 282,016!**
Apple: If you invested $ 1,000 when we doubled in 2008, You would have $ 41,869!**
Netflix: If you invested $ 1,000 when we doubled in 2004, You would have $ 482,720!**
At the moment we are publishing “Double Down” warnings for three incredible companies, and there may not be a different chance soon.
Go on “
*Stock Advisor Return on March 10, 2025
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of the Motley Fool. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and Sister of Meta Platforms CEO Mark Zuckerberg, is a member of the Motley Fool’s Board of Directors. Suzanne Frey, a director of Alphabet, is a member of the board of directors of the Motley Fool. Stefon Walters has positions in Apple and Microsoft. De Motley Fool has positions and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends BYD Company and Volkswagen AG and recommends the following options: Lang January 2026 $ 395 calls on Microsoft and Short January 2026 $ 405 calls on Microsoft. The Motley Fool has a disclosure policy.
Nasdaq Correction: I would consider buying the dip on all “Magnificent Seven” shares – except that it was originally published by the Motley Fool
