As the first quarter of 2024 draws to a close, the once-dominant "Magnificent Seven" tech stocks appear to be fragmenting. The group, which previously consisted of seven leading technology companies, has now dwindled to the "Magnificent Four." Nvidia (NVDA), Microsoft (MSFT), Meta (META), and Amazon (AMZN) continue to spearhead gains, while Tesla (TSLA), Apple (AAPL), and Alphabet (GOOG, GOOGL) have underperformed compared to their peers.

Yahoo Finance's Jared Blikre and Madison Mills discuss the details.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

MADISON MILLS: Today is the beginning of the second quarter for 2024 with US major averages coming off a very strong start to the year, largely driven by that rally in tech. Maybe one name in particular there driving it as well. But the dominance of the Magnificent Seven does appear to be starting to wane, at least as several other names are starting to show some positive upside while others in the Mag Seven are starting to slow down. So Jared, I know you've been watching this closely. I'm curious from your perspective, what can you tell us about just the shift that we've seen in the Mag Seven so far this year?

JARED BLIKRE: Well, it's nothing sudden. But it does speak as to a trend. And let's go not to the Wi-Fi Interactive. I actually have a graphic here at-- there you go. Magnificent Seven market cap, this is how much they've changed or grown or shrunk in market cap this year. Leading the pack is Nvidia. That's up over a trillion. Then you have Meta and Microsoft and Amazon, the next three are up over $300 billion.

Then Alphabet. Alphabet was negative until very recently. I'm pretty bullish on the technical setup in and Alphabet over the next few years. So I would say the Mag Five is probably what we need here. Yeah, you can get rid of Tesla, you can get rid of Apple due to their underperformance. Apple down $346 billion.

But these are vastly different companies anyway. And to put them in the same bucket never really made much sense except that they were all performing well and it happened to be together. I want to show one other chart here. This is the Mag Seven versus the Mag Four. And that Mag Four is Nvidia, Meta, Microsoft, Amazon.

And you can see since the beginning of 2023, up 156% versus 96% for that Mag Four. And that's really just because Apple and Tesla have been a drag on performance. But I should note, too, that both of those handily, handily beat the performance that we've seen in the S&P 500, in the NASDAQ 100, And all the other major indices.

MADISON MILLS: Well, Jared, I'm really curious about what you said, though, about what you're seeing with Alphabet when it comes to the technicals and some bullish signals ahead because Alphabet has really been struggling this year as it definitely is lagging in the AI race. So what are you seeing?

JARED BLIKRE: Well, let's go to the Wi-Fi Interactive. I do have an Alphabet chart here. This is year-to-date, so you can see, indeed, just based on what's happened this year, it is a lot of sideways action. However, you can see it's just broken above a trading range.

Now, if I go to a three-year view, what excites me is this. This is a large cup, this is a little handle, and we have just broken to the upside. Given the length of this consolidation, which is over two years, you would expect a lot of follow-through to the upside. So that's really just the basis of my call here, and that's just based solely on technicals.

MADISON MILLS: I love technicals.

JARED BLIKRE: Thank you. I'm converting people. So I'm always looking for new subjects.

MADISON MILLS: I'm ready.