Magnificent Seven Tumble as AI Spending Fears Resurface After Alphabet, Tesla Earnings
GOOG sits 69% above its 52-week low of $188.7.
Summary
The Magnificent Seven are under heavy selling pressure Thursday, with Alphabet and Tesla leading declines after their earnings reignited concerns over massive AI capital expenditures. The Roundhill Magnificent Seven ETF (MAGS) dropped over 4%, testing key support near $61.25. This follows Alphabet's recent $80 billion equity offering and a capex forecast raised to $205 billion, which already triggered a 6% single-day plunge. The selloff reflects growing unease about the durability of AI-driven growth and the enormous sums being committed. Technical levels to watch: a break below $60.72 could accelerate losses toward the March low near $55. The broader rotation out of growth stocks adds to the pressure, with Communication Services and Technology among the weakest S&P sectors this month.
At the time of this announcement, GOOG was trading at $319.48 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9T. The 52-week trading range was $188.70 to $404.47. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.