Magnificent 7 in 2025: Earnings Mostly Up, Stocks Down

After a strong run in 2024, the Magnificent Seven tech stocks have struggled to keep their momentum in early 2025. Despite several companies posting solid earnings, the stocks are all down year-to-date (YTD).

2025 YTD stock returns vs 2024 net income growth

Here’s a look at how each of the Magnificent Seven stocks has performed so far in 2025, along with their latest annual net income figures. All data is as of 20 March 2025, rounded to one decimal point.

• Nvidia: Net income jumped 144.9% in 2024, yet the stock is down 14.5% YTD.
• Amazon: Profits nearly doubled (+94.7%), but the stock is still down 7.5%.
• Alphabet (Google): Earnings rose 35.7%, yet shares have dropped 3.5%.
• Meta: Net income grew 59.5%, and the stock is down 1.2%.
• Microsoft: Net income increased 21.8%, but the stock is down 10.2%.
• Apple: Net income declined 3.4%, and the stock is down 10.6%.
• Tesla: The biggest laggard – net income dropped 52.5%, and the stock is down 33.8%.

What’s driving the disconnect between earnings and stock prices?

Last year, tech stocks rallied. That rally was driven by excitement around artificial intelligence and strong earnings growth.

But heading into 2025, much of the good news was already priced in. After last year’s rally, the results didn’t bring in much new buying. And in some cases – like with Nvidia – earnings became a “sell-the-news” event. The day after its Feb 26 earnings call, NVDA dipped almost 10%.

In Tesla’s case, the story is different. The company saw a steep 52.5% drop in net income last year, and its stock is down more than 30% in 2025. That drop reflects both earnings pressure and concerns around competition, demand, and margins.

What this means for covered call ETPs

IncomeShares ETPs (exchange-traded products) use covered call strategies for each of the Magnificent seven stocks. This strategy involves holding the underlying investment while selling “out-of-the-money” call options to generate potential income from premiums.

When stock prices fall or trade sideways, income from premiums may partially offset stock price volatility. But overall returns depend on market conditions.

See this blog post for a closer look at the Magnificent Seven’s latest earnings reports.

Key takeaways

• The Magnificent Seven stocks are down year-to-date, despite strong earnings in 2024.
• Much of the good news may have already been priced in after last year’s rally.
• Covered call strategies may offer income potential in sideways or volatile markets. But overall returns depend on market conditions.