The Roundhill Magnificent Seven ETF (BATS:MAGS) surged to an all-time high Thursday morning, powered by blockbuster quarterly earnings from key holdings Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META). Here’s what investors need to know.
What To Know: The highly concentrated ETF tracks the performance of the seven stocks colloquially known as the “Magnificent Seven”: Tesla Inc (NASDAQ:TSLA), Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA), Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN), Meta and Microsoft.
The rally was ignited after Microsoft reported fourth-quarter revenue of $76.44 billion and EPS of $3.65, comfortably beating analyst expectations.
The company cited exceptional growth in its Intelligent Cloud segment, with revenue up 26% year-over-year, driven by strong demand for its Azure and AI services. CEO Satya Nadella called “Cloud and AI the driving force” of business transformation.
Similarly, Meta Platforms impressed Wall Street, reporting second-quarter revenue of $47.52 billion and an EPS of $7.14, crushing estimates. The social media giant also issued strong third-quarter revenue guidance and highlighted AI’s role in improving ad performance.
The stellar results from both tech titans prompted a wave of price target upgrades from analysts at firms including Goldman Sachs, Morgan Stanley and Piper Sandler.
The performance underscores the growing dominance of the Magnificent Seven, which now collectively account for over $19 trillion in market value and represent 35% of the S&P 500, solidifying their critical role in the broader market’s direction.
Adding to the market’s focus, fellow “Magnificent Seven” member Apple is scheduled to release its third-quarter financial results after the market closes today.
These results will be closely scrutinized for updates on consumer hardware demand and the company’s highly anticipated AI roadmap.
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