'Magnificent 7' stocks erase $797 billion in market value in worst day since April 2025 - Yahoo Finance

What the report says

Yahoo Finance reported that the “Magnificent Seven” megacap technology stocks had their largest one-day drop since the market sell-off linked to tariffs in April 2025. Citing Bloomberg, the report said Microsoft, Amazon, Apple, Alphabet, Nvidia, Tesla and Meta together shed about $797 billion in market value on Thursday, July 23, 2026.

The sharpest pressure came from Alphabet and Tesla after their quarterly earnings updates. Yahoo Finance said Alphabet’s shares fell 6%, while Tesla dropped 14% and accounted for roughly $200 billion of the group’s lost value. Alphabet’s revenue and cloud backlog grew, but investors focused on the company’s rising capital spending for artificial intelligence infrastructure.

The report framed the sell-off as part of a broader reassessment of AI spending among large technology companies. Evercore ISI’s Mark Mahaney told Yahoo Finance that investors appeared more interested in companies receiving AI infrastructure spending than in those making the large outlays. In contrast to the megacap declines, Yahoo Finance said shares of memory-chip companies including Micron Technology, SK Hynix and Sandisk rose.

Tesla’s plans to invest heavily in AI, including autonomous robotaxis and robots, also drew scrutiny. Northwestern Mutual Wealth Management’s Brent Schutte told Yahoo Finance that investors should consider diversification into less expensive stocks with clearer earnings support. The move matters because the Magnificent Seven have been major drivers of market performance, making sharp declines in the group significant for broader indexes and investor sentiment.