Mag 7 Lift Profit Margins as S&P 493 Stalls and AI Gains Stay Limited
Updated
Updated · Apollo Global Management · Jun 8
Mag 7 Lift Profit Margins as S&P 493 Stalls and AI Gains Stay Limited
2 articles · Updated · Apollo Global Management · Jun 8
Summary
Revenue per employee is rising across the Mag 7 while falling at small-cap companies, according to Apollo data based on a 60-day moving average.
Profit margins are also climbing for the Mag 7, but remain flat for the S&P 493, underscoring how gains are concentrated in the biggest tech names.
Fed rate hikes and higher all-in yields are still pressuring companies with weaker credit fundamentals, helping widen the gap between mega-cap tech and the rest of the market.
AI has not yet translated into broader revenue or margin improvement outside the Mag 7, suggesting the payoff remains largely confined to tech giants.