Investors who enjoyed multi-bagger percentage returns on the Magnificent Seven stocks need to watch for a bubble pop closely. In the last week, Apple (AAPL) bounced off a “double bottom” bullish pattern at $167.66 last week. Shares gained 4.11%, compared to a 50 bps drop in the Nasdaq (QQQ).
Tesla (TSLA), which is down 31% YTD compared to Apple’s 8.3% drop, also bounced back. CEO Elon Musk deflected bearish momentum over the firm potentially canceling its inexpensive Tesla 2 release. Musk vowed to launch a Robotaxi service in August.
After markets closed, Tesla slashed the prices of its FSD (full self-driving) subscription. Prices fell from $199/month to $99/month. The company also instructed sales staff to demonstrate FSD to its customers before they took delivery of their Tesla vehicles.
Tesla’s FSD price cut is a negative development. It indicates weak demand for the software. Still, this feature is far more affordable than when Musk initially indicated a $100,000 price tag. The new rate is more affordable.
Nvidia (NVDA) shares did not change for the week. Instead, AMD slid by 4.19%. After Intel (INTC) announced a less expensive AI server, markets expected AMD would suffer the most from the higher competition.
Super Computer Micro (SMCI), which doubled (+216%) in 2024, lost 5.22% last week. It is down nearly 25% in the month.
