Nasdaq Correction: 2 "Magnificent Seven" Stocks Down 19% and 21% You'll Regret Not Buying on the Dip

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Anthony Di Pizio, The Motley Fool

Sat, Mar 15, 2025, 10:00 AM 7 min read

The Nasdaq-100 is made up of 100 of the largest nonfinancial companies listed connected the Nasdaq banal exchange. It has delivered a instrumentality of 343% implicit the past decade, doubling the summation of the much diversified S&P 500 thanks to its precocious attraction of the world's largest tech stocks.

But the Nasdaq-100 tin besides beryllium much volatile during times of uncertainty, and it's presently successful correction territory aft a 13% diminution from its caller peak. Some of the largest constituents successful the index, namely the "Magnificent Seven," are starring the decline. This radical of 7 companies earned their nickname for their inclination to outperform the broader marketplace (notwithstanding the occasional unsmooth patch) and their unthinkable size. Here they are, on with their caller marketplace caps:

Apple: $3.1 trillion.
Microsoft: $2.8 trillion.
Nvidia: $2.8 trillion.
Amazon : $2.1 trillion.
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG): $2 trillion.
Meta Platforms (NASDAQ: META): $1.5 trillion.
Tesla: $770 billion.

I privation to absorption connected 2 of these stocks due to the fact that of their charismatic valuations comparative to the remainder of the group, and their imaginable to capitalize connected emerging themes similar artificial quality (AI). Shares of Meta Platforms and Alphabet are down 19% and 21%, respectively, from their grounds highs, and here's wherefore investors mightiness regret not buying them connected the dip.

Meta Platforms is the genitor institution of the Facebook, Instagram, and WhatsApp societal networks, which service implicit 3.3 cardinal radical each day. The institution generates gross by selling advertizing slots to businesses, truthful the much ads it tin amusement each day, the much wealth it makes.

Since astir fractional the world's colonisation already uses Meta's apps, attracting caller sign-ups is becoming harder, truthful the institution is focusing connected engagement instead. It's utilizing AI successful its proposal engines to larn what benignant of contented users similar to see, truthful it tin amusement them much of it to support them online for longer.

Toward the extremity of 2024, CEO Mark Zuckerberg said this strategy drove an 8% summation twelvemonth implicit twelvemonth successful the magnitude of clip users spent connected Facebook, and a 6% summation for Instagram.

Introducing caller products is besides portion of management's engagement instrumentality kit. The institution launched an AI chatbot called Meta AI past twelvemonth that is accessible done each of its existing apps.

Users tin inquire it questions connected a assortment of topics, oregon invitation it into their radical chats to settee debates and urge amusive activities. Meta AI had implicit 700 cardinal monthly progressive users astatine the extremity of past year, which makes it 1 of the astir fashionable chatbots successful the world.