Tesla and Apple remain the biggest laggards of the 'Magnificent Seven'

We started the year with the Magnificent 7 that’s slowly whittling down to the Fantastic Five as both Tesla and Apple continue to struggle. Today. As a clear example of it, Deirdre Bosa joining us now with a look at why it’s not just the stock decline that each of these two tech darlings have in common right now. Deirdre. That’s right. Good morning, Sarah. So it’s time we should maybe start thinking about the Fantastic Five is the Fabulous 4 for a little bit as well. But Google has really made its way back into the mega cap winners with its 12% rise over the past month. And that leaves Apple and Tesla still out of the group, Today’s performance from both those names underscoring that new dynamic shares of Tesla, they are sinking after laying off 10% of its workforce insurance of Apple. They’re also dipping on reports of weak iPhone shipments. Zoom out. The bifurcation is even more pronounced, though they’re the only two that are still in the red for the year. And it is not just that stock decline that they have in common. There are a surprising number of fundamental parallels between the two, both companies facing increased competition from China that is hitting top line growth. For Tesla, it’s new xpong, BYD, among others. Today’s layoffs? They’re in response to that falling sales, price wars and the share decline today. It suggests that Wall Street is seeing layoffs as a response to shrinking business rather than push for efficiency. That has helped push other mega caps higher in terms of their stock price. Meanwhile, new numbers from IDC this morning, they show that Apple’s global market share of smartphones. They’re giving up ground to Chinese players as well. Their Xiaomi transient oppo Huawei as well. It’s a combo of soft sales from the latest iPhone model last September and Beijing’s ban on foreign devices in the workplace. Now, another thing that Apple and Tesla have in common. Both have reportedly killed major projects. There’s Tesla’s mass market car, Apple’s own attempt at a car. Musk has denied that report. Apple hasn’t commented. And in this kind of fascinating link guys to both of them. Xiaomi, one of the top Chinese smartphone players, launched an Eevee last week doing something that sort of. Confronts both those names. On the flip side, they both have opportunities on the horizon to win investors back, and the stakes are high. Apple’s chance will come first on June 10th with its annual developers event. AI will take center stage there. Tesla’s catalyst could be in August with its Robo Taxi reveal, which Morgan Stanley says could set the tone for 2320 thirty excuse me, and beyond now. Musk has promised Robo taxis for years though, and Apple may be playing catch up in AI and have to prove that this is going to be more than just an AI upgrade cycle. In both those cases, though, guys, the stakes are high and they’ve set the bar high for themselves after a period of, let’s call it, under performance.