MANATAM ‘Magnificent Seven’ stocks surging in 2023, forget FAANG.
In the year 2023, there has been a significant change in the stock market. A new group of companies called MANATAM has emerged as a driving force behind the market’s impressive surge. For years, FAANG stocks including Facebook, now Meta Platforms Inc (NASDAQ: META), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Google’s parent company Alphabet Inc (NASDAQ: GOOGL) have dominated the tech sector. However, a fresh wave of growth has propelled the rise of the ‘Magnificent Seven’ stocks, aptly named MANATAM including Microsoft Corp (NASDAQ: MSFT), Apple, Nvidia Corp (NASDAQ: NVDA), Alphabet, Tesla Inc (NASDAQ: TSLA), Amazon, and Meta.
These companies have solidified their positions as winners in the investment landscape with significant gains recorded throughout the year. The ‘Magnificent Seven’ have outshined the rest of the Nasdaq 100 components by a wide margin. Some experts including CNBC’s Jim Cramer have noted their remarkable performance.
Microsoft has proved its tenacity with a 38% increase in stock value this year. Apple has continued to impress investors with a 37% increase in its stock value this year. NVIDIA has seen its stock price rise by 159% in 2023. Amazon has weathered the market storms with a 44% increase in its stock value. Tesla has continued to dominate the EV market with a 66% rise in stock value. Alphabet has demonstrated its resilience and innovation with a 39% increase in its stock value. Meta has experienced significant growth in 2023, with its stock value soaring by 120%.
Factors Driving the Growth of MANATAM Stocks
The investments made by the ‘Magnificent Seven’ stocks in artificial intelligence (AI) have played a vital role in further increasing their appeal and adding to their profits. Jim Cramer emphasized Microsoft’s performance, attributing it in part to the company’s $10 billion investment in an AI language processing tool called ChatGPT.
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Furthermore, the Federal Reserve’s decision to pause interest rate hikes has benefited the entire technology industry, including the ‘Magnificent Seven’ stocks. The pause in interest rate hikes has alleviated investor anxieties and helped to establish a more stable market environment. This has allowed IT companies to concentrate on their expansion strategies without the added pressure of increased borrowing prices.
While the ‘Magnificent Seven’ stocks have seen amazing gains and received extensive attention, it is crucial to note that not all experts are as enthusiastic. Nigel Green, a stock market commentator, has cautioned investors about the increasing noise and frenzy surrounding these stocks. Green emphasizes the importance of portfolio diversity as one of the important points. He highlighted that overreliance on a particular sector or a small group of stocks from big tech companies can expose investors to heightened risk.