How Will Facebook, Apple, Amazon, Microsoft, and Google’s Stocks Do in a Recession?

Tech giants will weather the pandemic recession, but nothing lasts forever

Nick Maggiulli
Marker
Published in
5 min readMar 16, 2020

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A barricade closes off a pedestrian street as an Apple Store is seen in a nearly empty commercial street on February 18, 2020
Photo: Kevin Frayer/Getty Images

PPrior to the recent panic-ridden stock market sell-off spurred by COVID-19, there were four $1 trillion companies in the United States. These four tech giants — Apple, Amazon, Microsoft, and Alphabet (Google) — were the first companies to join the four-comma club, and two of them are still quite close:

But what makes their ascent even more remarkable is how it happened faster than the rest of the stock market.

For example, if you look at the share of the largest two, five, or 10 companies in the S&P 500 since 2010, you can see that this trend emerged quite recently:

Now, I understand that the biggest companies aren’t the same year to year, but if you look at the top 10 companies in the S&P 500 from 2010 to 2019, you may notice a pattern. (Note: The blue bars in the graph below are Facebook, Apple, Amazon, Microsoft, and Google (FAAMG), and the numbers are in billions of dollars.)

We can plot the share of the S&P 500 represented by these FAAMG stocks since 2010 to get a clearer picture of their overall growth within the S&P 500:

As you can see, over the past decade, the FAAMG stocks have increased their share of the S&P 500 from 7% to 17%.

These tech giants, which were valued at $650 billion in 2010, are now worth nearly $5 trillion, a 7.6-fold increase within a decade. To put this into perspective, over this same time period, the S&P 500…

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Nick Maggiulli
Marker

Financial Blogger at OfDollarsAndData.com. Full Disclosure: Not investment advice. See OfDollarsAndData.com/Terms for full disclaimer.