The top five tech stocks by market cap
In this part of the series, we’ll discuss the top five biggest tech companies by market capitalization. The graph below compares the market capitalization of these stocks. The top five tech stocks by market capitalization, Apple (AAPL), Google-parent Alphabet (GOOGL), Microsoft (MSFT), Facebook (FB), and Amazon (AMZN) currently have an aggregate market capitalization of ~$3 trillion.
Meanwhile, Apple alone has a market cap of over $820 billion, while Apple and Alphabet together have a market cap of ~$1.5 trillion. The stocks have risen 37.2%, 18.5%, 21.2%, 48.9%, and 29.4%, respectively, year-to-date.
The top five stocks have boosted the S&P 500 Index
Only a little over three years back, these top five companies had a cumulative market cap of $1.5 trillion. These stocks have been the major driver behind the gains in the S&P 500 Index (SPY), as these companies make up close to 15% of the S&P 500 Index and a whopping 42.5% of the NASDAQ Composite Index.
These stocks have been the main factors behind the tech rally this year and since the financial crisis. Recently, the S&P 500 Information Technology Index finally breached the levels it had seen during the dot-com bubble after 17 years. While the S&P 500 Index has soared 200% since the crisis, the S&P 500 Information Technology Index has gained a whopping ~400% in that period.