Investors are piling into Magnificent Seven stocks as most of the group prepares to report third-quarter earnings. The Roundhill Magnificent Seven ETF (MAGS) has continued to attract inflows this month, and the next few weeks will be crucial. The fund has climbed to $72.41, up 32% from its lowest level this year.
MAGS ETF inflows are rising as investors buy the dip
The Roundhill Magnificent Seven ETF has done well in the past few months. Its stock has jumped and is nearing its all-time high, while its inflows have continued rising. The fund has added over $1.19 billion in assets in the last 30 days, bringing the assets under management (AUM) to $5.8 billion.
The ongoing trend has coincided with the recent rebound of most of its constituent companies. Tesla stock has jumped by over 24% from the year-to-date low. Microsoft stock jumped to $534, up by 53%, while Alphabet jumped to $340 from the March low of $270.
Other top companies in the ETF, including Amazon, Meta Platforms, and Nvidia, have also jumped from the year-to-date low.
Magnificent Seven earnings are coming up
The ongoing Magnificent Seven ETF inflows are happening at a time when they are about to publish their earnings reports. Tesla will be the first company to release its Q3 earnings, which analysts expect will show modest growth.
In the last delivery numbers, Tesla said that it delivered 486,532 vehicles after making 464,391 vehicles during the quarter. The average estimate is that its revenue will come in at $28 billion, largely flat from what it made in the same period last year.
Meta Platforms will also publish its financial results on the same day. These will be important numbers because they come after the company released Muse, its popular AI agent product. It also comes as Meta plans to lease its spare data centers to clients. Analysts expect the upcoming earnings report to show that its revenue rose by 23.70% to $63.40 billion. For the year, analysts see the revenue rising to $254 billion.
The next Magnificent Seven companies, Apple, Microsoft, Amazon, and Microsoft, will publish their financial results next week. Apple’s numbers come at a time when demand for its products is strong, with its Duos phone being sold out. Its revenue is expected to come in at $113 billion, up by 10% from a year earlier.
Microsoft is expected to report that its revenue rose 16.8% in the third quarter to $90.7 billion. Amazon is forecast to post revenue growth of 12.2% to $202 billion. These reports will be important because both companies are likely to offer more clues on their capital expenditure plans.
The MAGS ETF has also added assets because most of these companies have become undervalued. For example, Microsoft has a forward price-to-earnings ratio of 26, lower than the five-year average of 30. Amazon has a multiple of 30, while Nvidia, one of the fastest growing companies, has a multiple of 22.