The group of high-performing tech stocks known as the "Magnificent Seven" has collectively lost $2.6 trillion in market capitalization over the past 20 days. 

This significant decline precedes a highly anticipated earnings week for several of these tech giants.

On July 31, The Kobeissi Letter highlighted the severity of these losses, noting that "The Magnificent Seven has lost triple the value of Brazil’s entire stock market in 20 days."

The Magnificent Seven includes industry titans Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Nvidia, and Tesla. These companies have led the growth of the S&P 500 since the market low in 2022, but recent market activity has shaken investor confidence.

Microsoft, Nvidia, and Alphabet Also Suffer Share Slumps

Microsoft, the world's second-largest company by market capitalization, reported its fourth-quarter earnings for the 2024 fiscal year ending June 30. Despite better-than-expected earnings, Microsoft's stock (MSFT) fell 3.8% on July 30, closing at $422.92. Over the past three weeks, the company's market capitalization has declined by 15%, now standing at $3.1 trillion.

Meanwhile, Nvidia, whose Q2 earnings report is due on Aug. 28, has already experienced a 23% stock slump, resulting in an $800 billion market cap loss since July 10. The semiconductor giant’s market capitalization now sits at $2.55 trillion, with its share price (NVDA) closing at $103.73 on July 30, down 7%.

Alphabet, the parent company of Google, reported Q2 earnings of $84.72 billion on July 23, a 5.2% increase from the previous quarter. Despite this, Alphabet's market cap has dropped by 12% since July 10, with shares (GOOG) largely unchanged, closing at $171.47 in after-hours trading.

Apple and Amazon Set to Report Earnings

Apple, the largest company in the world by market cap at $3.35 trillion, is scheduled to release its earnings report on Aug. 1. The company has seen a 9% decrease in market cap, equating to a $312 billion loss since July 10. Shares (AAPL) closed at $218.80, down 7% from their recent peak.

Similarly, Amazon, with a market cap of $1.89 trillion, has seen a 12% decline over the past three weeks. Its stock (AMZN) dipped 1.5% on July 30, closing at $180.90 in after-hours trading. Amazon’s Q2 earnings report is also expected on August 1.

Meta, formerly known as Facebook, ranks sixth among the Magnificent Seven with a market cap of $1.17 trillion. The company has lost 18%, or $257 billion, of its market cap since July 10. Meta is set to release its Q2 earnings report on July 31, with its stock (META) falling 2.5% to $463.19 on July 30.

Tesla, led by Elon Musk, has a market cap of $711 billion, making it the smallest of the Magnificent Seven. The company has lost 19% in market cap since July 10. Tesla reported its lowest quarterly profit margin in five years on July 23, with earnings per share missing estimates for the fourth consecutive quarter. Consequently, Tesla’s stock (TSLA) plummeted 9.4% on July 30, closing at $222.62.

Broader Market Implications of the Magnificent Seven Slump

The substantial losses among these tech giants could signal broader market volatility, especially in higher-risk assets like cryptocurrencies. Interestingly, during the same three-week period, the total crypto market capitalization has gained 11%, suggesting a potential early divergence in market trends.

As the earnings reports unfold, the performance of these tech behemoths could set the tone for market sentiment in the coming months. Investors and analysts alike will be closely monitoring the results to gauge the potential impact on the broader financial markets.