Grades of magnificence
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Investors may increasingly be looking at the Magnificent Seven as individuals rather than as a group.
The big picture: Hype around artificial intelligence — and the future profit explosion it could shower down — has driven the seven tech-focused stocks in the group to dizzying heights.
- Yes, but: They've been pouring billions into their efforts to capitalize.
Driving the news: This week's earnings reactions show an increasingly discerning investor.
Zoom in: Shares in Amazon surged 6% today after last night's quarterly results, driven by accelerating revenue growth and — perhaps more importantly — a strong operating margin, Hope reported last night.
- Similarly, Alphabet shares popped earlier this week after the Google parent delivered a strong third quarter fueled by the strength in its core business.
On the other side are Meta, Microsoft and Apple.
- Stock in Facebook's parent is down more than 4% since the company reported Wednesday afternoon. It delivered strong revenue growth for the quarter, but also reported weaker-than-expected user growth, making investors more wary of its ever-growing AI bill.
- Microsoft and Apple are both down following earnings too. Both turned in strong results for the past quarter, but investors have focused more on their softer-than-expected guidance for the current one.
The bottom line: The bar on what's magnificent might be getting higher.
