Crypto Updates

Cathie Wood’s Ark Rose To Prominence with Tesla Bet in 2020, But Did ARKK Miss Out Big On Other ‘Magnificent 7’ Opportunities?

Veteran Trader Peter Brandt Asks Macro Guru If Bitcoin Bull Has Finally Awoken From Deep Slumber

The Magnificent Seven group has been the flavor of Wall Street over the past year, as these stocks led the stock market to rebound from 2022’s dismal performance.

Here’s a look at how much return an investment in a basket comprising the Magnificent seven stocks in equal proportion would have fetched vis-a-vis Cathie Wood-led Ark Investment’s flagship Ark Innovation ETF (NYSE:ARKK).

New Group On The Block: FAANG was the precursor to the group, now collectively called the Magnificent Seven. Originally named FANG by Jim Cramer in 2013, the group became known as FAANG with the addition of Apple, Inc. (NASDAQ:AAPL) in 2017. The original members were Meta Platforms, Inc. (NASDAQ:META), which then went by the name Facebook, Amazon, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), formerly Google.

Later iterations were MAGA, which included Microsoft Corp. (NASDAQ:MSFT) along with Apple, Alphabet and Amazon, and MAMAA, comprising Meta, Apple, Microsoft, Alphabet and Amazon.

The phrase Magnificent Seven was first used by BofA Securities analyst Michael Hartnett in 2023. The constituent companies spearheaded the stock market rebound during the year, thanks to the dominant market positioning, innovativeness, brand appeal and financial muscle of these companies. This group comprises the biggest mega-cap techs including Meta, Apple, Alphabet, Amazon, Nvidia Corp. (NASDAQ:NVDA), Microsoft and Tesla, Inc. (NASDAQ:TSLA).

The AI revolution that is firmly taking hold has to do with Nvidia joining the elite club. The chipmaker was the best-performing S&P 500 stock in 2023 as well as for the year-to-date period, propelling the company to sixth place in terms of market capitalization. The exuberance reflects astounding growth prospects due to Nvidia’s exposure to AI. The Santa Clara, California-based company’s high-performance chips currently power most AI software and applications.

Earlier this year, Microsoft toppled Apple to be the top company in terms of capitalization, with the expanded partnership with OpenAI, and the use of its technology in its Bing search and cloud services, among others, generating positive sentiment toward the stock. Meta and Alphabet also stake claim as among the biggest AI plays.

Amazon’s dominant market…

Click Here to Read the Full Original Article at Cryptocurrencies Feed…