The three Magnificent Seven stocks that analysts predict could experience significant declines, based on their price targets, are:
1. Meta Platforms (formerly known as Facebook): BNP Paribas Exane analyst Stefan Slowinski set a price target of $360 for Meta Platforms, implying a potential 24% decrease from its closing price on May 10. Slowinski cited Meta’s lack of new revenue streams compared to other companies investing in AI and increased capital expenditures related to AI as reasons for his pessimistic outlook. However, Meta remains the leader among social media platforms, with nearly 91% of global internet search share and 3.24 billion daily active users as of Q1 2023.
2. Nvidia: D.A. Davidson analyst Gil Luria predicted a price target of $620 for Nvidia, indicating a possible 31% decrease from its current share price. Luria expressed concerns regarding potential slowdown in demand for Nvidia’s AI-accelerating graphics processing units (GPUs) in the current year, as major clients such as Microsoft, Meta Platforms, Amazon, and Alphabet develop their own AI-GPUs. However, Nvidia’s GPUs lead the market in terms of AI acceleration for data centers, and demand exceeded supply in fiscal 2024 (January 28-December 31, 2023).
3. Tesla: Longtime Tesla bear Gordon Johnson set a price target of $23.53 for Tesla’s stock, suggesting a potential 86% dip. Johnson arrived at this price target by applying a multiple of 15 times Tesla’s earnings per share (EPS) in 2025 and working backward with a 9% discount rate. Despite facing increasing EV and hybrid competition, Tesla is currently the only pure-play EV manufacturer making recurrent profits and recently launched its fifth mass-production model (Cybertruck). However, Tesla’s efforts to diversify into renewable energy generation and storage have seen slower growth, and CEO Elon Musk’s ambitious promises, such as Level 5 autonomy and robotaxis, remain unfulfilled. Additionally, Musk’s leadership has proven to be a liability for the company.
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