1 week The top five U.S. public companies are carrying the market on its back, but so are a lot of other stocks Reddit      

This is the top 10 right now:

SymbolCompanyMarketcapPrice/share52-week rangeHighsLowsOff highsOff lowsMarketcap gain since the 52-week low
AAPLApple Inc$2.43T$145.40$89.15 – $150$150.00$89.15-3.07%63.10%$1.53T
MSFTMicrosoft Corporation$2.12T$281.40$196.25 – $284.1$284.10$196.25-0.95%43.39%$919.57B
AMZNAmazon.com, Inc.$1.81T$3,585.20$2871 – $3773.08$3,773.08$2,871.00-4.98%24.88%$449.79B
GOOGAlphabet Inc Class C$1.74T$2,652.01$1406.55 – $2659.92$2,659.92$1,406.55-0.30%88.55%$1.54T
FBFacebook, Inc. Common Stock$981.72B$346.23$226.9 – $358.79$358.79$226.90-3.50%52.59%$516.30B
BRK.BBerkshire Hathaway Inc. Class B$638.67B$279.88$190.4 – $295.08$295.08$190.40-5.15%47.00%$300.15B
TSLATesla Inc$631.26B$655.29$273 – $900.4$900.40$273.00-27.22%140.03%$883.97B
VVisa Inc$519.68B$243.66$179.23 – $250.46$250.46$179.23-2.72%35.95%$186.81B
NVDANVIDIA Corporation$483.70B$194.10$181.64 – $835$835.00$181.64-76.75%6.86%$33.18B
JPMJPMorgan Chase & Co.$462.73B$152.86$91.38 – $167.44$167.44$91.38-8.71%67.28%$311.32B​

Apple is leading the way. Microsoft, Amazon, and Google aren’t far behind. The purpose of this post is the look at how much more value the top companies have gained in comparison to to the rest of the market. As of market close today, here’s the indices:

IndexPrice52-week rangeHighsLowsOff highsOff lows
S&P 500$4,358.69$3,200.05 – $4,393.68$4,393.68$3,200.05-0.80%36.21%
Nasdaq Composite$14,631.95$10,217.31 – $14,803.68$14,803.68$10,217.31-1.16%43.21%
Dow Jones Industrial Average$34,798.00$25,992.28 – $35,091.56$35,091.56$25,992.28-0.84%33.88%
Russell 2000 Index$2,234.04$1,432.57 – $2,360.17$2,360.17$1,432.57-5.34%55.95%

S&P500, NASDAQ, and Dow are about 1% from its highs while the Russell Index is about 5%. All indices are way off its lows from 52 weeks ago (even more so from the bottom of the 2020 cash). Clearly the indices are doing ok. But what about the stocks in the S&P500?

In this next chart, here’s the value companies in the S&P500 have made since 52 weeks ago (again, the gains should be much more than this since the 2020 lows).

Marketcap valuation gained during the last 52 weeks

Top 5Top 10Top 20Top 50Top 100Top 250
$$4.96T$6.49T$7.93T$10.76T$14.15T$18.03T
%23.69%31.02%37.87%51.42%67.62%86.14%

Bottom 250Bottom 100Bottom 50Bottom 20Bottom 10Bottom 5
$$2.9T$780.77B$340.88B$92.3B$38.79B$13.11B
%13.86%3.73%1.63%0.44%0.19%0.06%

The total value gained in the S&P500 index since one year ago is $20.93 trillion! The top 5 companies contributed to about 24% of those gains and the top 250 companies contributed to basically all of it (~86%).

As of right now, the S&P500 index is now valued at $39.38 trillion, so the S&P500 index has doubled in value since a year ago which is absolutely insane. Let’s look at the valuations of these companies.

Valuations of companies right now

Top 5Top 10Top 20Top 50Top 100Top 250
$$9.08T$12.26T$15.67T$21.89T$27.68T$34.86T
%23.05%31.13%39.8%55.59%70.29%88.51%

Bottom 250Bottom 100Bottom 50Bottom 20Bottom 10Bottom 5
$$4.52T$1.18T$478.81B$159.71B$73.03B$23.64B
%11.49%3%1.22%0.41%0.19%0.06%

Top and Bottom Companies off their highs and lows

Top 5Top 10Top 20Top 50Top 100Top 250
off the highs-2.56%-12.340%-9.13%-6.86%-6.79%-7.42%
off the lows54.50%54.221%48.67%47.09%53.02%54.03%

Bottom 250Bottom 100Bottom 50Bottom 20Bottom 10Bottom 5
off the highs-11.53%-13.56%-14.55%-16.05%-20.23%-19.23%
off the lows65.00%67.48%75.81%67.54%61.85%56.65%​

Top 10 includes Tesla, which is about 25% off its highs that’s why you see the top 10 is -12% off its highs. Besides that, one could say the top 5 companies are carrying the index. The top 250 aren’t doing so bad either. After that, the bottom 250 gets a bit ugly. The smaller caps did gain more overall up until their highs before they retreated.

Now let’s look at how much carrying the top companies are doing.

Companies in the S&P500 for every 1-3% move

1%2%3%
% of the S&P500$%$%$%
AAPL6.16%$24.26B0.062%$48.53B0.12%$72.79B0.18%
MSFT5.38%$21.19B0.054%$42.39B0.11%$63.58B0.16%
AMZN4.59%$18.08B0.046%$36.16B0.09%$54.24B0.14%
GOOG4.42%$17.42B0.044%$34.83B0.09%$52.25B0.13%
FB2.49%$9.82B0.025%$19.63B0.05%$29.45B0.07%
BRK.B1.62%$6.39B0.016%$12.77B0.03%$19.16B0.05%
TSLA1.60%$6.31B0.016%$12.63B0.03%$18.94B0.05%
V1.32%$5.20B0.013%$10.39B0.03%$15.59B0.04%
NVDA1.23%$4.84B0.012%$9.67B0.02%$14.51B0.04%
JPM1.18%$4.63B0.012%$9.25B0.02%$13.88B0.04%
JNJ1.13%$4.46B0.011%$8.93B0.02%$13.39B0.03%
WMT1.00%$3.96B0.010%$7.91B0.02%$11.87B0.03%
UNH0.99%$3.91B0.010%$7.83B0.02%$11.74B0.03%
MA0.96%$3.77B0.010%$7.53B0.02%$11.30B0.03%
PYPL0.90%$3.54B0.009%$7.09B0.02%$10.63B0.03%
HD0.88%$3.47B0.009%$6.94B0.02%$10.41B0.03%
PG0.87%$3.41B0.009%$6.82B0.02%$10.22B0.03%
BAC0.84%$3.30B0.008%$6.59B0.02%$9.89B0.03%
DIS0.82%$3.21B0.008%$6.43B0.02%$9.64B0.02%
ADBE0.74%$2.92B0.007%$5.83B0.01%$8.75B0.02%​

Every 1% move Apple makes as of now, ~$24 is moved and the S&P500 index moved ~0.06%. A 3% move would impact $72 billion dollars in valuation and has a 0.18% impact on the index. Doesn’t seem much but the index is valued at almost $40 trillion dollars. Look at how much of an impact these stocks together make.

1% move2% move3% move
Top 50.23%0.46%0.69%
Top 100.3%0.6%0.9%
Top 200.391%0.78%1.17%

The top 20 companies can make a 1%+ move if they averaged a 3% increase/decrease.

So what should I get out of this?

  • The S&P500 is top heavy – 23% of its valuation comes from the top 5 companies. 55% of its valuation from the top 50 companies. Almost 90% from the top 250 companies.
  • S&P500 adds and removes companies all the time. If a company is performing poorly and finds a company that is doing well over the past few quarters, it will consider swapping them.
  • Valuations in these companies don’t reflect what’s going on the economy. All indices are near record highs yet there’s a lot going on in the economy (unemployment, inflation, real estate, etc.) that at any moment could create FUD.
  • Stock picking isn’t easy. It’s a lot more difficult to find the losers than to pick the winners. Make sure you have a strategy. Reddit is known for choosing small caps. If you’re going to invest in small caps, don’t let emotion get to you. They usually see wild swings 10-20% days up and down.
  • Hopefully some insight what the overall market looks like. Large caps are carrying the market, we’re at all-time highs, and earnings are coming up. Expect some profit taking next week and the weeks after during earnings season.

Hope ya’ll find this useful. Good luck to all.

submitted by /u/reggiebergst
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