Down $767 billion in a single day: Mag7 shares are on the verge of their biggest drop in over a year

Shares of the largest U.S. technology companies—the “Magnificent 7”—are on track for their biggest one-day drop in more than a year. According to Bloomberg estimates, during the sell-off on July 23, they collectively lost about $767 billion in market value. U.S. markets plummeted on Thursday under pressure from sharply falling shares of Tesla and Alphabet, both part of the Mag7. The day before, both companies released quarterly results that, according to Bloomberg, cast doubt on the sustainability of the AI trend—the very trend that has been driving the stock market forward over the past three years.

Shares of the seven largest U.S. technology companies—Nvidia, Alphabet, Tesla, Apple, Microsoft, Amazon, and Meta—are on the verge of their biggest one-day drop since the April 2025 sell-off (which was triggered by concerns over U.S. President Donald Trump’s tariff policy). Now, on July 23, the Bloomberg Magnificent 7 index, which tracks the performance of the “Magnificent Seven,” fell 4.8% amid reports from Tesla and Alphabet that spooked the market—these two companies led the decline in the Mag7 on Thursday. Specifically, Tesla shares plummeted by more than 14%, Alphabet by 6.5%, Meta by 3%, Microsoft by 2.5%, and Nvidia and Apple each fell by 1.5%. Overall, the combined market losses of the “Magnificent Seven” companies have already led to a $767 billion decline in their market capitalization, according to Bloomberg.

Overall, the Bloomberg Magnificent 7 Index has fallen 11% from its peak at the end of May, having already lost $2 trillion in market capitalization.

Alphabet as a whole reported strong quarterly results, but it raised its capital expenditure forecast for this year from $190 billion to $205 billion, which worried investors—market participants are assessing whether the big tech companies’ multibillion-dollar investments in AI will pay off.

At that time, Tesla reported adjusted earnings that were significantly below analysts' expectations. In addition, following the release of the report, CEO Elon Musk told investors that 2026 would be “a year of massive capital expenditures.”

Overall, Reuters notes, both companies alarmed the markets by spending more cash than they earned last quarter due to massive investments in AI infrastructure.

“The real problem lies in the amount of money invested [in AI],” noted Ken Mahoney, CEO of Mahoney Asset Management. “No one knows what the return on [these] investments will be.” The macroeconomic environment, including rising oil prices amid the escalating conflict in the Middle East, is putting increasing pressure on the stocks of the “Magnificent Seven,” he added.

This article is being updated

This article was AI-translated and verified by a human editor