The Magnificent Seven: Market Dominance and Performance Analysis in 2023
An analysis of how seven major technology stocks (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, Tesla) drove 50% of US equity market gains in 2023, increasing their collective market cap by $5.1 trillion. The article examines whether their outperformance stems from momentum correction, superior profitability, or winner-take-all economics, concluding that operating performance and pricing power were key drivers.
Metrics in this report
47$ trillion
aggregate
1926-2019 period
4.8$ trillion
aggregate
2022 performance
74%
within decile
2023 performance
1.1 to 12$ trillion
range
2012-2023
5.1$ trillion
aggregate
2023 performance
7.97%
end of 2012
historical baseline
24.51%
end of 2023
current concentration
2.9xmultiple
almost tripled
2023 stock price appreciation
3.0xmultiple
more than tripled
2023 stock price appreciation
17.97%
shortfall
2012-2023 period
19%
within decile
2023 performance
22%
of total increase
1926-2019 period
23.25%
with Mag Seven
2023 full year
12.6%
without Mag Seven
2023 full year
6658count
total
2023
35%
overall decile
stocks down most in 2022