The Seven Great Stocks – Amazon.com (Amzn), apple (Camel), a Google parent the alphabet (Google), Meta platforms (dead), Microsoft (MSFT), Nvidia (NVDA) And Tesla (TSLA) are wrapping up a huge year, easily outperforming the S&P 500.
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Nvidia stocks and Meta platforms are the best performers on the S&P 500 in 2023, with Tesla and AMZN stocks among the top 20 stocks.
But these giants could be poised for further gains. Nvidia and Microsoft are leaders in the AI boom, and Meta, Google, and Amazon are also making high-profile moves into the AI space. Even Tesla claims AI intentions. Apple has been relatively quiet about the future of artificial intelligence, but is “investing a lot,” according to CEO Tim Cook.
Google, Apple, and Amazon stocks are in buy zones. Microsoft and Nvidia shares have formed new shallow bases within previous buy zones. Tesla stock is hovering around early entries while Meta Platforms is expanding slightly.
Tesla, Amazon, Microsoft, Nvidia, and Meta platforms all work IBD Leaderboard. Amazon and Meta stocks are on SwingTrader. MSFT stock is on IBD's list of long-term leaders. Nvidia and Meta stock are on Bahraini dinar 50. Meta stock is on IBD Big Cap 20.
Great performance for the seven stocks
| a company | tape | Market capitalization, in trillions | 2023 gain |
|---|---|---|---|
| apple | Camel | $3.02 | 49.0% |
| Microsoft | MSFT | $2.79 | 56.5% |
| the alphabet | $1.76 | 58.9% | |
| Amazon | Amzn | $1.59 | 82.6% |
| Nvidia | NVDA | $1.22 | 238.9% |
| Meta platforms | dead | $0.92 | 197.8% |
| Tesla | TSLA | $0.80 | 105.5% |
| Standard & Poor's 500 | 24.6% |
S&P 500: Amazon stocks
Amazon shares rose at the beginning of the year, consolidated for a few months and then broke out in May from a bottoming base that was mostly below the 200-day line. The e-commerce and cloud computing giant hit 145.86 on September 14, then was sold off until October 26. That marked a bottom for the Nasdaq, in part because AMZN stock rose on earnings the next session.
Shares traded around a consolidated buy point of 145.86 from mid-November to mid-December, before moving to the top of the 5% buy zone. Investors can use 149.26 as a high handle entry.
Amazon stock is up 82.6% so far in 2023.
Amazon's profits rose 236% in the third quarter, with revenue growth rising for the second straight quarter to 13%.
Apple shares
Apple stock has been on the rise since early January, reaching a record high of 198.23 on July 21. The shares consolidated for several months, before breaking out of the cup-with-handle base on December 5. After hitting a record high of 199.62 on December 14, shares fell to around the 192.93 buy point and 21-day line. While in a buy zone, investors may want to see some strength before taking a position.
AAPL stock has jumped 49% in 2023 through December 28.
Apple's profits rose 13% in its fiscal fourth quarter, the second straight quarter of acceleration. But revenues declined for four straight quarters compared to the previous year.
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Google shares
After a quick start early in 2023, Google shares consolidated and broke away from the cup-with-handle base in early April, although they did not decisively mark that territory until early May. The search engine giant, which has growing ambitions in cloud computing and artificial intelligence, broke out of its cup-with-a-handle bases in late July and late December, according to MarketSmith. Shares are trading just above a 139.42 buy point.
GOOGL stock is up 58.9% through December 28.
Google's earnings have improved from -19% to -11%, to +17% and +42% in the past few quarters. Revenue growth over the past three quarters has risen to 11%.
Metastock
Meta stock actually bottomed in November 2022, and continued until early February 2023. The parent company of Facebook and Instagram broke out of a flat base in March, then skyrocketed to 326.20 on July 28. The meta platforms were then integrated over the course of several months, before finally going permanent in December after testing the line for 50 days. Shares have now extended from a 326.20 or 330.54 consolidated buy point. Investors can see 342.92 as an alternative entry.
Meta stock is up 197.8% so far in 2023.
Earnings and sales growth have accelerated in the past three quarters, with earnings per share up 168% in the third quarter and revenue up 23%.
Microsoft shares
MSFT stock has traded tight over the past six weeks, and that has turned into a flat base as of Friday's close, at a 384.30 buy point. The cloud computing, artificial intelligence and software giant has been hugging its 21-day line, trading in a buy zone from a cup base dating back to late July. Microsoft shares rose from early January to early February, then broke out of a flat base in March, continuing into July.
MSFT stock is up 56.5% through December 28.
Microsoft's earnings and sales growth have accelerated over the past three quarters, with gains of 27% and 13%, respectively, in the first quarter of fiscal 2024.
Nvidia stock
Nvidia stock, like Meta, bottomed in October 2022. Shares broke out of the cup base in late January. NVDA stock offered more entries in early and late May, before finally reaching a peak of 502.66 on August 24. Shares broke out of a double-bottom base on November 10, hitting a record high of 505.48 on November 17. Nvidia stock then fell back to the 50-day line but quickly regained the buy point of 476.09. Shares have now formed a flat base with an entry of 505.48.
NVDA stock has gained a whopping 238.9% as of December 28th.
Nvidia's profits have skyrocketed thanks to huge demand for its AI chips, with massive gains of 429% and 593% in the last two quarters. Revenues increased by 101% and 206%. The chip giant has announced strong guidance over the past few quarters. Restrictions on US exports of AI chips to China are a headwind for Nvidia. So are competing AI chips from AMD and Intel, as well as in-house chips from Microsoft and other big buyers.
Tesla's electric vehicle business faces 'challenges' in 2024. That may not stop TSLA stock.
S&P 500: Tesla stock
Tesla stock hit a two-year low intraday on January 6 as the electric car giant announced major price cuts. But stocks reversed upward that day, also marking a follow-up to the Nasdaq, and continued to rise. Stocks continued to rise until mid-February, where they reached resistance at the 200-day line. TSLA stock broke out of this consolidation, taking it decisively past 200 days in early June. Shares hit a 2023 high of 299.29. But it declined due to the second and third quarter earnings results, and finally reached a bottom of 194.07 on October 31. Tesla stock has rebounded, and is trading around an early entry level of 259.84. It has a 278.98 buy point from the ugly double bottom base.
Tesla stock is up 105.5% so far this year.
Tesla's profits suffered in 2023, falling 37% in the third quarter to their worst level in more than two years. Continuing price cuts have increased car deliveries, but at the expense of previously large profit margins.
Tesla will announce fourth-quarter and full-year deliveries on or around January 2, 2024, and analysts expect deliveries to come in close to the electric car giant's target of 1.8 million.
Please follow Ed Carson on X/Twitter at @IBD_ECarsonTopics in @edcarson1971 And Bluesky V @edcarson.bsky.social For stock market updates and more.
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