Wall Street’s famed “Magnificent Seven” stocks may have earned a far less flattering nickname.
John Roque, technical strategist at 22V Research, just launched a new name for the cohort that powered the 2020s bull market: the Maleficent 7.
The call comes after a brutal June for Big Tech. Every member of the Magnificent Seven is in the red for the month, with Microsoft Corp. (NASDAQ:MSFT) leading the declines, down 21.6% and on pace for its worst monthly performance since December 2000.
Amazon.com Inc. (NASDAQ:AMZN) has fallen 15.8%, Tesla Inc. (NASDAQ:TSLA) is down 14.1%, Meta Platforms Inc. (NASDAQ:META) has lost 13.9%, Apple Inc. (NASDAQ:AAPL) is lower by 11.7%, Alphabet Inc. (NASDAQ:GOOGL) has declined 9.7% and Nvidia Corp. (NASDAQ:NVDA) has slipped 7.8%.
Roque thinks Microsoft Corp. has the furthest to fall.
| Magnificent 7 | Month-To-Date Performance (%) |
|---|---|
| Microsoft Corporation | -21.55% |
| Amazon.com, Inc. | -15.81% |
| Tesla, Inc. | -14.16% |
| Meta Platforms, Inc. | -13.89% |
| Apple Inc. | -11.70% |
| Alphabet Inc. | -9.69% |
| NVIDIA Corporation | -7.80% |
The Stock Has Gone Nowhere For Two And A Half Years
Microsoft has traded below a downward-sloping 200-day moving average since February 2026, Roque said. It was rejected at that falling average in early June and has dropped more than 18% since.
It sits below its 50-day average too.
The stock is now closing in on its March 2026 lows — a support level first reached in November 2023.
By that measure, Microsoft has not made investors money in more than two and a half years.
It also sits at a six-and-a-half-year low relative to the S&P 500.
Microsoft found support near $350 in April 2025 and again this past spring. Roque does not believe it holds.
A break below $350 would, on his math, open the path to $250 — measured down from the stock’s failure near $450 in early June. That is roughly 30% below current levels.
The Bigger Picture Is A Faded Cohort
The downgrade is not Microsoft’s alone.
Roque’s renamed “Maleficent 7 index” – as closely tracked by the Roundhill Magnificent Seven ETF (NYSE:MAGS) – trades below its 40-week moving average, which has begun to roll over, with momentum that has turned and what he reads as bearish action relative to the S&P 500.
Four of the seven names are down by double digits in 2026. Microsoft, Meta Platforms Inc. and Tesla Inc. hold the weakest technical scores.
The three still higher on the year — Apple Inc., Alphabet Inc. (NASDAQ:GOOG) and Nvidia Corp. — “aren’t impressing anyone,” Roque said.
The fundamental story behind the slide is well documented: a capital-spending boom on AI data centers that is swallowing the free cash flow Microsoft once returned to shareholders.
Roque’s note adds a second signal. The chart, he said, is now confirming what the cash-flow math already implies.
Image: Shutterstock
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