The “Magnificent Seven” stocks are likely to be more affected by retaliatory tariffs given that they get a substantial chunk of their revenue from foreign countries, according to an analysis from Apollo. “Roughly 50% of earnings in the Magnificent 7 come from abroad … that is higher than for the S & P 500, where the share is 41%,” Apollo chief economist Torsten Slok wrote in a note to clients on Monday. “As a result, the Magnificent 7 will be hit harder on their global earnings than other S & P 500 companies.” Six of the seven companies got at least half their revenues from outside the U.S. in 2024, Apollo data shows. In 2023, around 70% of Nvidia’s revenue came from abroad. The Magnificent Seven comprises Nvidia, Amazon, Apple, Microsoft, Meta Platforms, Tesla and Alphabet. The seven megacap technology stocks have tumbled since U.S. President Donald Trump unveiled his long-awaited tariff policy on Wednesday. CNBC’s Magnificent Seven index has lost more than 11% since that day. .MAG7 mountain 2025-04-02 CNBC Mag Seven index since April 2 The Trump administration’s plans include a unilateral 10% levy that took effect this weekend, as well as steeper tariffs on countries including China, Vietnam and Taiwan — nations that manufacture a significant number of devices and machine components for major U.S. tech companies. The levies have prompted retaliation from several trading partners. Beijing’s decision last week to match the U.S. levies has increased the risk of a more extreme U.S.-China trade war , piling onto worries that could hit the once high-flying group of tech stocks. According to Slok, the Magnificent Seven could see its earnings get “even more negatively impacted” if Europe retaliates in the form of a digital services tax, or a DST. Several European Union member countries have already implemented or proposed DSTs to tax revenues from large multinational digital companies, which have significantly affected the market value of U.S. companies. Slok said resulting trade wars from Trump’s tariffs will still hit other countries greater than they will affect the U.S. “With trade making up a bigger share of GDP in the rest of the world than in the U.S., the trade war will have a disproportionately more negative impact on the rest of the world,” Slok said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
