The Magnificent Seven Lose $800 Billion in Market Capitalization, Bitcoin Holds Steady

On July 23, the stocks of the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) recorded a loss of $800 billion in market capitalization, reaching a total of $2 trillion since their peak at the end of May. Tesla experienced a drop of over 16%. This investor skepticism is exacerbated by the postponement of OpenAI's IPO, which is awaiting a valuation of $1 trillion by 2027, and by competition from Chinese open-source models. Capital is being aggressively redeployed away from AI-related stocks, according to Simone Ragazzi of Algebris Investments. Meanwhile, Bitcoin remains around $65,000, with a slight decrease of less than 0.3% over the last 24 hours. However, other cryptocurrencies like Ethereum, Solana, and XRP have seen larger declines, with an average drop of 1.7%, and Dogecoin showing a decrease of over 3%. This resilience of Bitcoin could attract investors in light of the fragility of the tech sector.