Mag 7 Laggard Meta Has Quietly Turned Positive for 2026. What Comes Next.

The Magnificent 7 stocks have been struggling in 2026, with only Apple (AAPL) outperforming the Nasdaq 100 Index ($IUXX). Among the group, Nvidia (NVDA) is the only other constituent to see double-digit gains. However, Tesla (TSLA) remains the worst-performing stock, down over 18% year-to-date. Investor wariness over tech companies' rising capital expenditure for artificial intelligence (AI) infrastructure is the main reason behind this trend.

Apple, an outlier in the AI race, is now benefiting from this, while Nvidia, OpenAI, and Oracle's $745B financing deal have hit their first stress test with a Fed rate hike. Meta, despite its robust digital advertising business, has been weighed down by AI monetization and concerns over teen safety, but recent progress with AI monetization and a recent settlement for teen safety issues has turned Meta positive for the year.

Analyst sentiment towards Meta is also improving, with JPMorgan upgrading it to Overweight and Wedbush raising its target price. While Meta's rally may not be sustainable in the near term, the outlook for the year remains positive.