Name: What Tesla’s Sliding Stock Says About Apple, Amazon and Other Big Tech Companies | WSJ
Uploaded: 2024-02-25T03:06:19.000Z
Duration: 4 min 29 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

- [Narrator] A group of seven big tech stocks

known as the magnificent seven, grew 75% in 2023,

leaving the rest of the S&P 500 in the dust.

But if we look at each individual stock in 2024,

- Tesla has kind of stuck out like a sore thumb

- [Narrator] This year, Tesla's share price is down

- If Tesla's stock keeps falling, that might be bad news

simply because it would drag the index down.

says about this elite group of tech stocks

this magnificent seven is by some measures

- So one big risk, I think, on investors' minds

is that while these stocks have helped drive

the market higher toward repeated highs to start 2024,

there is concern that they could stage a big U-turn,

- [Narrator] And it wouldn't be the first time.

In 2022, they collectively lost $4.7 trillion in value

could cause a recession dragging down the rest of the index.

- People were thinking, has the dot com bubble just burst?

You know, are these stocks done for good?

that changed when NVIDIA announced record profits

- [Colette] Generative AI drove significant upside in demand

and broad-based global growth across our markets.

- Many investors looking at its earnings,

They just had this incredibly blockbuster earnings report

and made investors think, we have to bet big on AI.

and a lot of these other stocks soaring as well.

- [Narrator] Around the same time, strong economic data

and easing inflation gave tech stocks another boost.

That led to the magnificent seven's 75% rally.

- [Elon] You know, I just want to temper expectations

- [Narrator] Musk later revealed that Tesla fell behind

All of this helped lead to that drop in its share value.

- In terms of concerns about, you know, bubbles

- [Narrator] A bubble is when shares of a stock

- Tesla has always been valued like a technology company,

because investors tend to value tech companies

So some of the really bearish investors on Tesla say,

and it doesn't deserve this kind of rich valuation premium."

- I've heard investors say that they think

AI in the stock market and the impact of AI

and all these AI beneficiaries are a huge bubble.

The issue is that we're still in early innings

and it's gonna be years before we find out, you know,

How are people and companies actually using this technology?

So that seems pretty far out in the future right now.

- [Narrator] While some investors are uncertain

others are doubling down on their positions.

and even institutional investors I've been speaking with

are kind of afraid to bet against these stocks

because they've been so dominant in the market.

- [Narrator] Some investors say that Tesla

doesn't deserve to be part of that group, but-

- The thing is, people have been saying that Tesla