These 6 mega-caps are responsible for half of the S&P 500 decline

© Photo: Richard Drew – picture alliance/AP Photo

It was a historic year of liquidation. The S&P 500 index lost about 20% – the biggest drop since 2008. Investors were wrenched from their dreams of profit.

What a painful year! Mega-cap stocks Tesla, Apple, Meta, Microsoft, Alphabet and Amazon alone lost a combined market value of $4.6 trillion, about half of the total loss in value of the S&P 500.

Amazon stock is having its worst year since 2000 and the second worst in company history. The stock is down about 50% this year (Thursday’s close) and has lost hundreds of billions of dollars in market capitalization.

But it’s much worse: among the most valuable tech companies, Amazon has consistently outperformed Meta and Tesla. 2022 was the worst year ever for Tesla shares: a total loss in value of 65% was recorded. The stock has had only one negative year since its IPO in 2010. In 2016, an eleven percent drop was on the price list.

Meta trails the electric car maker with a loss of more than 64%. Facebook’s parent company had its worst day in stock market history on Feb. 3, losing an estimated $251 billion in market value after a disappointing earnings report. CEO Mark Zuckerberg continues to spend billions developing the Metaverse even as the online advertising industry, which accounts for the bulk of his revenue, stagnates. Again, this is only the second year in the history of Facebookin which the stock is falling.

Alphabet Class C shares also posted their worst year on record, down about 38%. Voting A shares are listed 36% lower than at the start of the year.

Apple shares are down about 27% this year, more than the broader market. This equates to $845 billion in market capitalization. Nevertheless, Apple remains the most valuable company in the world at the end of the year.

Microsoft saw a similar price drop. About 28% and US$725 billion in market value has been destroyed this year.

A year to forget! If you’re still looking for above-average long-term performance, this might be it. Five Lions Certificate worth a look. He combines five absolute strategies in one title. One of these strategies is generally not available to retail investors – find out more here!

Author: Gina Moesing, wall street: online central editorial office

Leave a Comment