The combined market cap of US companies valued over a trillion dollars has reached $10 trillion in 2023, doubling from the previous year. Apple (AAPL) leads with a market cap worth over $3 trillion, followed by Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon (AMZN), and Nvidia (NVDA).
Yahoo Finance Market Reporter Jared Blikre breaks down these numbers, comparing the market share of these tech giants to their values from before the pandemic.
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Video Transcript
JULIE HYMAN: The combined market cap of US companies valued over $1 trillion hit 10 trillion in 2023, doubling valuations from last year. Yahoo Finance's Jared Blikre is here to dig into what happened there. Hi Jared.
JARED BLIKRE: Hi Julie. Mag Seven has played out. So we're going to talk about the five. And that doesn't include Meta and Tesla. But this is just fine for analysis here. $1 trillion club. Top of that is Apple with just over $3 trillion worth of market capitalization. You can see that in this yellow slice right here.
By the way, the rest of the market, the S&P 495, that takes up 75% of the market. So we're talking about 25% concentration by the five top issues. This goes down Microsoft, Alphabet, Amazon, NVIDIA. The latest entrance to the trillion dollar club, that's up to $1.231 trillion in market cap, and that's the biggest gainer this year. About 240% in the S&P 500.
And I've charted these five stocks along with the rest of the 495 all the way back to 2019. So you can see what happened over the pandemic. And by the way, just notice this scale starts at $15 trillion. So zero is actually down here. And again, about 25% of the market are these five stocks here.
But I was running a P/E analysis actually on the Mag Seven. I didn't have it for these top five, but it's a rough estimate. We're looking at a P/E of about 35 right now. And just before the pandemic, it was actually much higher. It was up 55-- or excuse me, at 50. And then just after the pandemic, it was 55. Regardless of how you slice it here, these stocks are a little bit less expensive than they used to be. So their earnings have caught up here.
Just want to talk about some of the other stocks here, the 495, and some of their industry groups that have really come alive over the last 43 days. That's since October 27th. The early last-- early part of the year, that was a Magnificent Seven. But you take a look at the top line here, over the past six weeks, ARKK up 54%. Then you've got Bitcoin, that's Grayscale, up 38%. Homebuilders, regional banks, solar, IPOs, chip stocks, internet stocks all up more than 25%. So been a pretty big year there.
- Yeah, Jared. It's interesting to see some of the names that had struggled earlier in the year, really picking up steam as we head to the year-end and investors seek to get a little bit more juice here. Jared, thank you so much. We really appreciate it.
