Magnificent Seven Stocks in Deep Trouble! Is This the End of Tech?

Foreign Revenue Problems!

Honestly you'd think with all the brilliance in Silicon Valley they'd have seen this coming! Apparently the 'Magnificent Seven' tech stocks – Nvidia Amazon Apple Microsoft Meta Platforms Tesla and Alphabet – are facing a rather nasty situation. According to Apollo's chief economist Torsten Slok about half of their earnings come from abroad. Half! That's more than the average S&P 500 company. As Madam Pomfrey would say "A nasty bit of work!"

Trump's Tariff Trouble!

Now here's where it gets thorny. With the U.S. slapping tariffs left and right – including a unilateral 10% levy and steeper ones on countries like China Vietnam and Taiwan (important manufacturing hubs you see) – these tech giants are feeling the burn. These tariffs are more dangerous than a Basilisk fang in a Cornish pixie fight! The CNBC Magnificent Seven index has already lost more than 11% since the tariff policy was unveiled. Blimey!

Retaliation is a Witch!

Of course other countries aren't just going to sit there like Neville Longbottom facing Snape. Beijing's decision to match the U.S. levies has really upped the ante raising the spectre of a full blown U.S. China trade war. As Ron would say “Why spiders? Why couldn’t it be ‘follow the butterflies’?” Indeed why tariffs? Why couldn't it be 'follow the galleons?'

Digital Taxes! Oh My!

And as if that weren't enough Europe's considering a 'digital services tax,' or DST. Several EU countries are already taxing revenue from big multinational digital companies which could further slash the market value of these American giants. More problems than a Niffler at Gringotts!

Global Impact

Slok argues that while the U.S. will feel the pinch other countries will suffer even more. With trade making up a larger chunk of GDP in the rest of the world these trade wars will have a disproportionately negative impact. It's a global disaster like releasing a horde of Dementors at a Quidditch match!

Expert Advice or Economic Divination?

So what's an investor to do? Well CNBC is hosting a Pro LIVE event at the New York Stock Exchange with experts like Carter Worth Dan Niles and Dan Ives to try and make sense of this mess. Honestly sometimes I think economists are just doing advanced Divination with charts instead of tea leaves. Still knowledge is power as they say. And in this case it might be the power to save your investments. Good luck you'll need it.