The ‘Magnificent Seven’ stock phenomenon has emerged from the continued consolidation of markets as dominant companies acquire potential competitors and scale efficiently. The group includes Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon.com (AMZN), Nvidia (NVDA), and Tesla (TSLA), coined by Bank of America analyst Michael Hartnett in April 2023. The stocks have contributed an 88% annualized current shareholder return at the time.
Despite Tesla’s recent struggles, the Magnificent Seven still outperforms the broader market. The Roundhill Magnificent Seven ETF (MAGS) has returned 35.8% year-to-date, compared to 15.1% for the S&P 500 (SPX) over the same period. These stocks make up about 30% of the S&P 500, highlighting their importance in the U.S. technology market.
Did cryptocurrencies outperform the Magnificent Seven?
Cryptocurrencies such as Bitcoin (bitcoin) and Ethereum (ETH) have outperformed most Magnificent Seven stocks and started 2019 with significantly lower market caps. The market capitalization performance of these assets over the five years from May 7, 2019 to June 28, 2024 is as follows:
| Legacy | Market capitalization in 2019 | Market capitalization in 2024 | % change |
|---|---|---|---|
| Microsoft (MSFT) | $9618.4B | $3.322T | 245.40% |
| Apple (AAPL) | $933.37B | $2.230T | 246.10% |
| NVIDIA (NVDA) | $105.42 billion | $3.039T | 2782.80% |
| Alphabet (GOOGL) | $8184.2B | $2.258 trillion | 175.90% |
| Amazon (AMZN) | $945.77B | $2,011T | 112.60% |
| Meta Platform (META) | $541.7 billion | $1.279T | 136.10% |
| Tesla (TSLA) | $43.8 billion | $631.08B | 1340.80% |
| Bitcoin (BTC) | $1039.8B | $1.25 trillion | 1102.20% |
| Ethereum (ETH) | $18.16 billion | 421.00B dollars | 2218.30% |
Nvidia and Tesla stand out with sharp increases in value of 2,782.8% and 1,340.8%, respectively. The market capitalization of these companies is $15.77 trillion, up 262.5% from five years ago.
Nvidia has outpaced Bitcoin and Ethereum over the past five years
Nvidia is the only stock in the Magnificent Seven to have outperformed both Ethereum and Bitcoin over the past five years. Its market cap has increased by 2,782.8% from $105.42 billion to $3.39 trillion. As of June 28, 2024, Bitcoin and Ethereum account for 66.9% of the total cryptocurrency market cap of $2.46 trillion, with Bitcoin at $1.25 trillion (49.9%) and Ethereum at $421 billion (17.0%).
Ethereum’s market capitalization increased from $18.16 billion to $421 billion, representing a growth of 2,218.3%. Bitcoin’s market capitalization increased from $103.98 billion to $1.25 trillion, representing a growth of 1,102.2%. Ethereum outperformed Bitcoin by 1.7x due to its late launch and low initial market capitalization.
How does Magnificent Seven’s market cap compare to Bitcoin and Ethereum?
As of June 28, 2024, the market capitalization of the Magnificent Seven, Bitcoin, and Ethereum totaled $17.44 trillion, with Bitcoin and Ethereum accounting for 9.6% of this value. Nvidia and Ethereum achieved the highest market capitalization growth over the past five years, at 2,782.8% and 2,218.3%, respectively.
Difference between Bitcoin and Ethereum market cap
The market capitalizations of Bitcoin and Ethereum have experienced various bullish and bearish events, including PayPal’s cryptocurrency integration in October 2020 and the collapse of Terra (LUNC) in May 2022. It is significant that the SEC approved 11 Bitcoin ETFs on January 11, 2024. Both Bitcoin and Ethereum have reached milestones of 50% increase in market capitalization. However, Ethereum’s market is still smaller than Bitcoin’s, making its performance less impressive compared to its counterpart.
methodology
This study examined the market capitalization of Magnificent Seven stock as of June 28, 2024, compared to Bitcoin and Ethereum. Magnificent Seven stock market capitalization data was collected from ycharts, and Bitcoin and Ethereum data were provided by CoinGecko.
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