The premiums afforded once untouchable 'Magnificent Seven' stocks continue to evaporate as Trump tariff concerns pound global markets. Price-to-earnings ratios for the Magnificent Seven have plunged across the board, according to new data from Creative Planning chief markets strategist Charlie Bileile. The Magnificent Seven includes Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA). The most significant multiple compression has come from Tesla, Nvidia, and Apple – three companies stuck in the crosshairs of Trump's bruising new trade policies. Apple shares alone have shed 13% in the past five trading sessions, or about $368 billion in market cap. Experts say that the P/E pullbacks reflect uncertainty about what future earnings will be for even the formidable Magnificent Seven, which are often heralded for their wide-moat business models and impressive cash piles. Heavy selling continued in markets around the world on Monday. Tokyo's Nikkei 225 (^N225) index tanked 7.8%. Hong Kong's stock market (^HSI) nosedived about 12%, the worst day in more than 16 years. China's Shanghai Composite Index (000001.SS) lost 8.4%. Futures on the Dow Jones Industrial Average (^DJI) dropped more than 1,100 points at one point. S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) futures were each down about 3.5%. Markets have shed an astounding $5.4 trillion in value in the two days since President Trump revealed big-time tariffs on major companies. The S&P 500 is now at its lowest level in 11 months. The impact of tariffs on Magnificent Seven players may be sizable. Amazon could see a $5 billion to $10 billion annualized operating profit hit from higher first-party merchandise costs due to tariffs, Goldman Sachs tech analyst Eric Sheridan warned in a new note. Assuming no mitigating factors such as cost cuts or vendor negotiations, Sheridan estimated that Amazon's US merchandise costs would soar by 15% to 20%. 'We don’t think this was it yet though. Last week's tariff announcement has dialed up uncertainty even further,' HSBC strategist Charlotte Parker said on Monday. Parker added, 'What will drive the next—and perhaps final—leg lower? Quite simple: definitive signs of deteriorating fundamentals. Long-only investors aren’t sufficiently prepared for this and most still seem to be clinging on to the 'it’s just a slowdown' narrative. Once we see the first hard data surprise negatively and/or companies start to cut their guidance in the Q1 reporting season, we think the near-term bounce would be very short-lived.'

One chart shows how much optimism has been wiped out of the 'Magnificent 7' because of Trump tariffs

The 'Magnificent Seven' stocks, including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, have seen significant price-to-earnings (P/E) ratio declines following Trump's tariff policies. Tesla, Nvidia, and Apple have been particularly affected, with Apple shares shedding $368 billion in market cap. Market losses have been substantial worldwide, with global indexes like the Nikkei 225, Hong Kong's Hang Seng Index, and China's Shanghai Composite Index experiencing large drops. Experts predict that the impact of tariffs could be significant, with Amazon expected to face an annualized operating profit hit of $5 billion to $10 billion.