The latest wave of losses was triggered by price target downgrades for Apple and Tesla from prominent Wedbush analyst Dan Ives, who warned of a looming "tariff economic armageddon" as Trump doubled down on tariffs and dismissed the possibility of renewed trade talks with China.
Tesla bore the brunt of the selloff, tumbling 7% to $223, making it the biggest decliner among the elite group of tech giants. Apple also slid 4.8%, while Alphabet and Microsoft hovered near one-year lows. Other members of the group, including Amazon, Meta, and Nvidia, fell between 1.5% and 4.8%.
A $6 Trillion Slide Since Peak
Once the darlings of Wall Street, the Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Meta, Tesla, and Nvidia—have collectively lost over $6 trillion in market capitalization since peaking in late 2024. The group’s dramatic reversal has contributed heavily to the $5 trillion lost from the S&P 500 index in just two trading sessions.
Apple and Tesla Face Tariff Turmoil
Ives, long considered a tech bull, slashed his price target for Tesla from $550 to $315, citing worsening brand perception due to CEO Elon Musk’s vocal support of Trump and far-right movements in Europe, which he believes may further alienate Chinese consumers amid escalating tensions.
Tesla’s weak first-quarter delivery numbers already suggested a tough year ahead. With Trump’s tariffs potentially sparking consumer backlash in China, Ives warned domestic EV makers like BYD could seize market share at Tesla's expense.
For Apple, Ives lowered his price target by $75 to $250, calling the tariff situation a "complete disaster" for the tech titan. Apple remains highly exposed to China, where most of its iPhones are assembled. Tariffs could force the company to raise U.S. prices to maintain margins, threatening demand.
“The idea of making iPhones in the U.S. is a non-starter at $1,000,” Ives wrote, noting any domestic manufacturing shift would push prices far beyond what most consumers could afford.
Although Apple previously secured tariff exemptions during Trump's first term, analysts remain uncertain whether similar waivers will be granted again—despite Apple’s pledge to invest $500 billion in the U.S. over four years.
AI Hype Meets Tariff Reality
Beyond tariffs, the selloff highlights growing investor caution around the tech sector’s AI-driven spending spree, which some fear could come under strain if trade tensions persist. Many companies are already operating with tight margins and high expectations—conditions vulnerable to cost shocks.
With the trade war showing no signs of abating, and tech giants already under pressure, market analysts warn that further volatility may lie ahead—especially if the geopolitical climate continues to deteriorate.
For now, the Magnificent Seven are no longer lifting the market. Instead, they’ve become the biggest casualties of a changing global economic landscape—one where policy, perception, and production are inextricably linked.