“Giant 5 Index” – AAPL, MSFT, AMZN, GOOG, FB – Sagged All Week, Rest of Market Rose, Still 2.5-Year Wild Ride to Nowhere

“Giant 5 Index” – AAPL, MSFT, AMZN, GOOG, FB – Sagged All Week, Rest of Market Rose, Still 2.5-Year Wild Ride to Nowhere by Wolf Richter for Wolf Street

And the FANGMAN shivered as Netflix got knocked down.

A reversal of roles took place in the stock market last week: The “Giant 5” combined – Apple, Microsoft, Amazon, Alphabet, and Facebook – had a lousy week. And the FANGMAN, which includes Netflix and Nvidia, shivered. But the rest of the market rose.

Over the week ended Friday July 17, the combined market capitalization of the Giant 5 fell by 3.5%, or by $234 billion, to $6.40 billion. Friday a week earlier, the combined market capitalization of the Giant 5 had reached an all-time high of $6.64 trillion, having skyrocketed since their crisis-low on March 16 by 62%, or by $2.54 trillion (market cap data via YCharts)

Four of the “Giant 5” fell during those five trading days. Only Apple ticked up a smidgen. The list shows the percent change over the week and the market capitalization (number of shares outstanding times current share price) as of the close on Friday:

  1. Apple [AAPL]: +0.3% to $1.67 trillion
  2. Microsoft [MSFT]: -5.3% to $1.54 trillion
  3. Amazon [AMZN]: -7.7% to $1.48 trillion
  4. Alphabet [GOOG]: -1.9% to $1.03 trillion
  5. Facebook [FB]: -1.6% to $688 billion.

Alibaba [BABA] doesn’t make the list because it’s not a proper stock that conveys a slice of equity; it’s an ADR, issued by an offshore mailbox company that has a contract with Alibaba. Holders of BABA have no ownership of Alibaba, the Chinese company. They have ownership of a mailbox company that has a contract with Alibaba.

How did the rest of the market do without the Giant 5?

Even as the Giant 5 had a lousy week, the total market, as measured by the Wilshire 5000, which includes all 3,415 or so stocks listed in the US, rose 1.6% over those five trading days.

But my “Wilshire 5000 Minus Giant 5 Index” — the rest of those 3,415 stocks without the Giant 5 — rose 2.9%.

This was a big move, but it still left the “Wilshire 5000 Minus Giant 5” 2.4% below June 8, and 8.6% below its peak on February 20. In fact, it’s up only 2.2% from January 26 of 2018, having been on a two-and-a-half-year wild ride to nowhere, and underperforming even a despicable savings account over the period, while whacking investors with a huge amount of volatility (Wilshire 5000 data via YCharts):

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Wolf Richter

In his cynical, tongue-in-cheek manner, he muses on WOLF STREET about economic, business, and financial issues, Wall Street shenanigans, complex entanglements, and other things, debacles, and opportunities that catch his eye in the US, Europe, Japan, and occasionally China. WOLF STREET is the successor to his first platform… TP-Title-7-small-200px …whose ghastly name he finally abandoned in July 2014. Here’s the story on that. Wolf lives in San Francisco. He has over twenty years of C-level operations experience, including turnarounds and a VC-funded startup. He earned his BA and MBA in Texas and his MA in Oklahoma, worked in both states for years, including a decade as General Manager and COO of a large Ford dealership and its subsidiaries. But one day, he quit and went to France for seven weeks to open himself up to new possibilities, which degenerated into a life-altering three-year journey across 100 countries on all continents, much of it overland. And it almost swallowed him up.