Five tech companies make up for almost a quarter of the S&P 500 market cap
These five companies are now collectively worth almost $10 trillion. That's nearly a quarter of the combined $41.8 trillion market cap of the entire S&P 500, the report said.
It's possible that the S&P 500 could have six companies worth at least $1 trillion at the same time if
But given the continued strength in tech, it's altogether possible that all six of these companies could soon each be worth at least $2 trillion, if not more. After all, Microsoft and Apple are knocking on the door of $3 trillion.
And other techs, such as chip leader Nvidia and China's Tencent are moving closer to the trillion dollar market valuation mark, the report added.
It seems almost unfathomable that so many companies could be worth this much. But earnings growth for many of the top techs continues to be strong, and that is pushing prices higher, the report added.
Still, the insatiable investor appetite for trillion-dollar techs reminds some market analysts of the
"Tesla's rally is reminiscent of Cisco's move in 2000, a move that marked the bubble top in 2000," said Mike O'Rourke, chief market strategist with JonesTrading, in a report this month.
O'Rourke pointed out that Cisco shares soared about 50 per cent in the first three months of 2000 and analysts at Credit Suisse predicted that Cisco would be the world's first trillion-dollar company, the report said.
AdvertisementIt didn't happen. Cisco, which was worth about $550 billion at the height of tech stock mania two decades ago, is now valued at about $240 billion. Intel, another tech stock leader of the late '90s, has struggled in the past few years and is nowhere close to its 2000 peak valuation.
It's proof that becoming a market leader may be easier than staying a market leader. There is no guarantee that the likes of Microsoft, Apple, Amazon, Alphabet and even Tesla will stay at the top, CNN reported.
Microsoft surpasses Apple as the world's most valuable company after the iPhone maker's stock slips on earnings miss
Tesla's surge to record highs catapults Elon Musk's net worth to $250 billion
Popular on BI
- A 'hole' 30 times Earth's size has spread across the sun, blasting solar winds that'll hit our planet by end of this week
- A former Twitter engineer said they watched colleagues 'drop like flies' from a virtual meeting during Elon Musk's mass layoffs
- Finland is offering free vacations for people to come and learn how to be happy after being named the happiest country in the world
- Scientists create car parts from lemons, corn, almonds and pomegranates that are better than traditional parts
- Cabinet clears dearness allowance hike by 4%
- India records 1,590 fresh COVID-19 cases, highest in 146 days
- Paytm announces launch of its upgraded payments platform powered by 100% indigenous technology — a shining example of ‘Make in India’
- Finance ministry clarifies on hike in STT on options trading