Will These Giants Stay Evergreen?

Chart of the Week: Will These Giants Stay Evergreen?

December 27, 2021

The big just keep getting mind-bogglingly bigger. The six largest companies in the U.S.—Apple, Microsoft, Alphabet (Google), Amazon, Tesla and Facebook (now Meta)—make up more than a quarter of the stock market’s size. Since the low point of the pandemic market shock in March 2020, these companies have seen their collective capitalization go from a little over $4 trillion to more than $10 trillion. (Market capitalization, or “market cap” for short, is the value of all publicly traded shares of a company.) The surge has been a gift to tech-centric investors, but keep in mind that trees, even Christmas trees, don’t grow to the sky.

Note: Chart shows market capitalization for each company listed on 3/23/2020 and 12/21/2021 in billions of dollars. Source: Morningstar.

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