Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google, reported stellar third-quarter earnings that not only beat Wall Street's expectations but also drove the combined market cap of the "Magnificent Seven" tech giants to an unprecedented $16.8 trillion.
Alphabet's earnings per share came in at $2.12, a 37% increase over the same quarter last year, far exceeding the consensus estimate of $1.55, according to data from Benzinga Pro.
Revenue reached $88.27 billion, representing a 15% year-over-year rise and surpassing the $86.39 billion that analysts anticipated.
Google advertising business was a key factor leading to the rise in revenue, totaling $65.9 billion, up from $59.6 billion last year.
Alphabet Stock Surge Adds Over $150 Billion To Market Cap
As a result of these impressive numbers, Alphabet's shares rallied over 6% by mid-morning on Wednesday, marking its best trading session since April.
The stock price increase translated into a more than $150 billion rise in Alphabet's market capitalization, which now stands at $2.239 trillion.
Alphabet's surge also gave a substantial lift to the combined valuation of the Magnificent Seven, pushing it to a record-high $16.8 trillion.
Mixed Performance Among the Magnificent 7
While Alphabet soared on the back of its strong quarterly report, other stocks within the Magnificent Seven showed mixed performance on Wednesday. Nvidia Corp. (NASDAQ: NVDA) slid as investors grew cautious on semiconductor stocks following weaker-than-expected earnings from Advanced Micro Devices Inc. (NASDAQ: AMD).
The week remains pivotal for the Magnificent Seven, as several other tech giants are set to release their quarterly earnings. Microsoft Corp. (NASDAQ: MSFT) and Meta Platforms Inc. (NASDAQ: META) will report their results after the close on Wednesday, while Amazon.com Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) will follow suit on Thursday after the market close.
Looking at the group's recent performance, Tesla Inc. (NASDAQ: TSLA) emerged as the strongest over the last five days, with its stock gaining 20.28% following a positive reaction to its recent earnings report.
Here's a breakdown of market caps, recent price changes and year-to-date returns for each company within the Magnificent Seven:
NameMarket CapPrice Chg (5 Days)Total Return (YTD)
- Apple Inc.$ 3,526.02-1.67%20.91%
- NVIDIA Corporation$ 3,416.76B-3.00%181.33%
- Microsoft Corporation$ 3,255.49B2.43%17.08%
- Alphabet Inc.$ 2,237.83B9.48%29.92%
- Amazon.com, Inc.$ 2,035.74B2.25%27.66%
- Meta Platforms, Inc.$ 1,507.24B2.37%68.83%
- Tesla, Inc.$ 841.61B20.28%5.51%
Alphabet's post-earnings rally has boosted several exchange-traded funds with significant exposure to the stock.
ETF NameWeight %1-day %chg
- Direxion Daily GOOGL Bull 2X Shares (NASDAQ: GGLL) 18.49%+10.7%
- iShares Global Communication Services ETF (NYSE: IXP) 12.61%+1.8%
- Fidelity MSCI Communication Services Index ETF (NYSE: FCOM) 12.40%+1.8%
- Vanguard Communication Services ETF (NYSE: VOX) 11.87%+1.9%
- Direxion Daily Magnificent 7 Bull 2X Shares (NASDAQ: QQQU) 10.73%+2.5%
- The Communication Services Select Sector SPDR Fund (NYSE: XLC) 10.70%+1.5%
- Kurv Technology Titans Select ETF (NASDAQ: KQQQ) 8.96%+1.1%
- NYLI U.S. Large Cap Core ETF (NYSE: LRND) 8.53%+0.6%
- Invesco AI and Next Gen Software ETF (NASDAQ: IGPT) 8.12%-0.8%
- ProShares Ultra Communication Services (NYSE: LTL) 7.99%+3.5%