Next Week, US Stocks Face a Make-or-Break Earnings Season, Shifting from "Magnificent Seven Faith" to "Performance-Driven"

Odaily News Over the past three years, the so-called "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) have largely led the stock market higher. However, this trend reversed at the end of 2025, as Wall Street began questioning the hundreds of billions of dollars these companies are spending on developing artificial intelligence and when these investments will yield returns. An index tracking the Magnificent Seven hit a record on October 29th. Since then, five of the seven companies have seen their stock prices decline and underperform the S&P 500. During this period, only Alphabet, with a gain of nearly 20%, and Amazon have maintained their upward trajectory. Darrell Cronk, Chief Investment Officer at Wells Fargo Wealth & Investment Management, stated: "Tech stocks have become a 'show-me' story. If the big tech companies can continue to deliver strong results, I believe capital will flow back into the tech sector." Next week, Microsoft, Apple, Tesla, and Meta are set to release their earnings reports. These results will offer a glimpse into the health of industries ranging from cloud computing and electronic devices to software and digital advertising. (Jin10)