Roughly 50% of earnings in the Magnificent 7 come from abroad, see chart below. That is higher than for the S&P 500, where the share is 41%.
With trade making up a bigger share of GDP in the rest of the world than in the US, the trade war will have a disproportionately more negative impact on the rest of the world.
As a result, the Magnificent 7 will be hit harder on their global earnings than other S&P 500 companies. Their earnings could be even more negatively impacted if Europe retaliates in the form of a digital services tax.
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