April 29 officially marked the 100th day of President Trump's second term in office. A lot has happened in those 100 days, especially around the U.S. economy and stock market.
The Trump administration enacted new tariffs, major indexes experienced historic price swings (in both directions), recession fears have grown, and the "Magnificent Seven" stocks that carried a lot of the market's recent gains were sent tumbling.
While the Magnificent Seven stocks as a whole have been struggling in 2025, this administration has had an outsized impact on two in particular. Could they rebound soon?
Image source: Getty Images.
1. Tesla
Tesla (TSLA 5.46%) has been hit the hardest out of the Magnificent Seven stocks. It is down 31% year to date and down 34% since Inauguration Day, as of this writing.
NASDAQ: TSLA
Key Data Points
There are a few problems facing Tesla's business, beginning with shareholders' increasing frustration with CEO Elon Musk's role as the head of the Trump administration's Department of Government Efficiency (DOGE). But it's not just Musk's role with DOGE; it's also the consumer backlash that has stemmed from some of his actions.
Tesla has been experiencing declining sales and increased competition, especially from China's BYD. In the first quarter of this year, Tesla's vehicle deliveries declined 13% year over year, marking the largest drop in company history. This caused revenue to decline 9% (BYD's Q1 revenue grew 36% in the same period), while net income fell 71% year over year.
Data by YCharts.
Without $595 million in regulatory credit sales, Tesla would've actually lost money in Q1, something it hasn't done since early 2021. Needless to say, it's been a rough patch.
That's the bad news. On a more positive note, Tesla's long-term ambitions rest on the company's ability to operate a large robotaxi network. On a recent call, Musk said robotaxis would "move the financial needle in a significant way."
Whether Tesla can scale robotaxis remains to be seen (there are a lot of regulatory hurdles to get over), but it's not likely to happen soon enough to stop the bleeding from its vehicle shipments and sales.
Tesla stock is no stranger to high volatility, and it may very well recover. However, it's a high-risk investment considering the stock still commands a premium valuation. Investors should temper their expectations until they see the EV business return to growth or get more detail on how the robotaxi operation will unfold.
2. Amazon
Amazon (AMZN 0.41%) stock hasn't experienced as steep a drop as Tesla has, but it's still down a considerable amount (15% year to date and 18% since the inauguration).
NASDAQ: AMZN
Key Data Points
Many investors are concerned regarding how Trump's trade agenda will affect Amazon's e-commerce business since many of the marketplace's third-party sellers rely on Chinese imports. New tariffs will likely result in higher costs for customers, but this isn't necessarily a long-term problem for Amazon. The administration could lift the tariffs just as suddenly as it implemented them.
There's also Amazon's cloud services business, Amazon Web Services (AWS), which is largely unaffected by the tariffs. E-commerce made Amazon a household name, but AWS made it a profitable company. Although AWS only accounted for 19% of Amazon's revenue in Q1, it made up 63% of operating income.
Data by YCharts.
AWS has countless big-name, high-dollar customers and a solid start-up client base, which is a recipe for sustained growth. Amazon is banking on this because AWS is its foreseeable growth driver, but it has been growing slower than competitors like Microsoft's Azure and Google Cloud. However, that's somewhat expected considering the size differences between the three.
Amazon is a massive enterprise with many working parts. And with a price-to-earnings (P/E) ratio of 30, it's not a "cheap" stock by most definitions, though it's on par with other Magnificent Seven companies like Apple and Microsoft.
I'm fully confident Amazon stock will rebound. That doesn't mean it'll happen in a week, month, or even this year, but its long-term trajectory looks promising enough for patient investors to consider the stock.
