Category Archives: market cap

Spring 2022 Snapshot of the S&P 500’s Market Cap

Through the end of the first quarter of 2022, the 505 companies that make up the S&P 500 (Index: SPX) were collectively worth $39.90 trillion, shrinking 5.8% from what they were worth at the end of 2021.

The 10 stocks that make up the largest components of the market capitalization weighted index continue to account for 29.5% of that value, unchanged from 31 December 2021. The following chart shows their share of the market cap of the whole index:

S&P 500 Market Capitalization, Snapshot on 31 March 2022

The other 495 firms in the S&P 500 have a collective market capitalization of $28.15 trillion.

Here is the list of the top 10 components of the S&P 500 index as of 31 March 2022:

  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Amazon (NASDAQ: AMZN)
  • Tesla (NASDAQ: TSLA)
  • Alphabet (A) (NASDAQ: GOOGL)
  • Alphabet (C) (NASDAQ: GOOG)
  • Nvidia (NASDAQ: NVDA)
  • Berkshire Hathaway (B) (NYSE: BRK.B)
  • Facebook (NASDAQ: FB)
  • United Healthcare (NYSE: UNH)

While the Top 10 firms of the S&P 500 maintained their overall share of the index' total market capitalization, the rankings of several firms within the Top 10 changed, with several notable changes in the weighting of firms within the index taking place since December 2021.

The top firm, Apple, saw its weighting within the index increase. The company now accounts for 7.1% of the S&P 500's total valuation by itself. The second largest firm, Microsoft, saw its relative share shrink from 6.3% in December 2021 to 6.0% at the end of March 2022. Number three Amazon held relatively steady, slightly increasing its share of the S&P 500 by 0.1% to 3.7%.

Then we come to the two biggest market cap stories of Spring 2022. The first of these is Tesla's rise to become the fourth largest publicly traded U.S. company. In growing to represent 2.4% of the index, the company surpassed the market cap of Alphabet's Class A common stock shares, which represented 2.2% of the index' value. Alphabet's Class C shares follow behind with a value of 2.0% of the S&P 500's market capitalization. [In case it ever comes up, the difference between Alphabet's Class A and Class C shares comes down to shareholder voting rights. Shareholders who own the Class A shares have them, investors who own the Class C shares do not.]

The second story is the fall of Meta Platforms, still better known as Facebook. Meta's valuation dropped from 2.0% of the total value of the S&P 500 to 1.3%, dropping the company from sixth to ninth in the index' Top 10. As a company, its size as measured by market cap is now surpassed by both Nvidia and Berkshire Hathaway.

It also edges United Health Group in size, where the difference is Meta Platforms' market cap of $0.54 trillion rounds down to 1.3% of the S&P 500's value, while United Health Group's market cap of $0.50 trillion rounds up to 1.3% of the S&P 500's total market cap.

Will Meta Platforms still be in the Top 10 firms of the S&P 500 three months from now? You'll have to check back for the Summer 2022 edition to find out!

References

Standard and Poor. S&P 500 Index Earnings and Estimates. [Excel Spreadsheet]. Accessed 1 April 2022.

Standard and Poor. S&P Market Attributes. [Excel Spreadsheet]. Accessed 1 April 2022.

Slickcharts. S&P 500 Companies by Weight. [Online Database]. Accessed 1 April 2022.

Ycharts. S&P 500 Market Cap. [Online Database]. Accessed 1 April 2022.

Market Cap of U.S. New Home Sales Flat in February 2022

After a positive January, the market capitalization for new homes sales in the U.S. dipped ever so slightly in February 2022. Political Calculations' initial estimate of the overall market capitalizaton of the U.S. new home market is $27.47 billion, holding essentially flat with respect to January 2022's revised estimate of $27.49 billion for the rolling 12 month average.

Trailing Twelve Month Average New Home Sales Market Capitalizaton in the United States, January 1976 - February 2022

February 2022's barely noticeable dip is the result of downward data revisions in previous months. The month itself was one of the strongest in the past year, seeing both rising average prices and number of sales. The following two charts visualize the trailing twelve month averages of the U.S. new home market's underlying annualized sales and average price data.

New home sales rose in February 2022:

Trailing Twelve Month Average of the Annualized Number of New Homes Sold in the U.S., January 1976 - February 2022

New home prices continued escalating:

Trailing Twelve Month Average of the Mean Sale Price of New Homes Sold in the U.S., January 1976 - February 2022

New home sales are counted toward GDP when their sales contracts are signed, so a flat or falling trend in the market cap for new homes represents an economic headwind for the U.S. economy. According to the National Association of Home Builders, new homes sales average roughly 3% to 5% of the nation's GDP.

U.S. New Home Market Sees Positive Growth in January 2022

The U.S. new home market showed signs of a rebound in January 2022. The market capitalization for American homebuilders ticked up for the month over a potential bottom of 2021's downtrend in December. Political Calculations' initial estimate of the overall market capitalizaton of the U.S. new home market for January 2022 is $27.53 billion, an increase of 0.5% from December 2021's revised estimate of $27.38 billion.

Trailing Twelve Month Average New Home Sales Market Capitalizaton in the United States, January 1976 - January 2022

The increase in the market cap for new homes was driven by two factors. First, the number of new home sales rose, continuing the increase in sales that began after November 2021. Second, the average sale price jumped higher, as 2021's rising trend for new home prices reasserted itself.

The following two charts visualize the trailing twelve month averages of the U.S. new home market's underlying annualized sales and average price data.

New home sales continued increasing:

Trailing Twelve Month Average of the Annualized Number of New Homes Sold in the U.S., January 1976 - January 2022

New home prices resumed rising:

Trailing Twelve Month Average of the Mean Sale Price of New Homes Sold in the U.S., January 1976 - January 2022

With both new home sales and prices rising in January 2022, the market cap for the U.S. new home market ticked upward, breaking its year-long downtrend and moving into positive growth. The question now becomes how long can that last with new homes becoming less affordable for the typical American household?

U.S. New Home Market Continues Shrinking

The U.S. new home market continued shrinking in December 2021. Political Calculations' initial estimate of the overall market capitalizaton of the U.S. new home market for December 2021 is $26.14 billion. That figure is 13.2% below the December 2020 peak of $30.12 billion.

Trailing Twelve Month Average New Home Sales Market Capitalizaton in the United States, January 1976 - December 2021

For December 2021, there were two notable developments. First, the number of new home sales rose slightly from the previous month, breaking what had been a steady decline. Second, the average sale price of the new homes sold declined, confirming the reversal of what had been a rising trend in recent months.

The following two charts visualize the trailing twelve month averages of the U.S. new home market's underlying annualized sales and average price data.

New home sales saw a slight increase:

Trailing Twelve Month Average of the Annualized Number of New Homes Sold in the U.S., January 1976 - December 2021

New home sale prices fell significantly:

Trailing Twelve Month Average of the Mean Sale Price of New Homes Sold in the U.S., January 1976 - December 2021

In December 2021, the effect of falling average sale prices outweighed the slight increase in number of sales. Consequently, the market cap for the U.S. new home market continued its now year-long decline.

Winter 2022 Snapshot of the S&P 500’s Market Cap

At the end of 2021, the companies that make up the S&P 500 (Index: SPX) were collectively worth $42.37 trillion. The 10 stocks that make up the largest components of the market capitalization weighted index accounted for 29.5% of that value. The following chart shows their share of the market cap of the whole index:

S&P 500 Market Capitalization, Snapshot on 31 August 2022

The other 495 firms in the S&P 500 have a collective market capitalization of $29.86 trillion.

Here is the list of the top 10 components of the S&P 500 index as of 31 December 2021:

  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Amazon (NASDAQ: AMZN)
  • Alphabet (A) (NASDAQ: GOOGL)
  • Tesla (NASDAQ: TSLA)
  • Alphabet (C) (NASDAQ: GOOG)
  • Facebook (NASDAQ: FB)
  • Nvidia (NASDAQ: NVDA)
  • Berkshire Hathaway (B) (NYSE: BRK.B)
  • United Healthcare (NYSE: UNH)

The top two firms, Apple and Microsoft, had market caps that were nearing $3 trillion each, with Apple briefly exceeding that value in early January 2022. If we combined the market cap for the two classes of Alphabet stocks, the firm formerly known as Google would have a market cap in excess of $1.8 trillion, which would rank third. Separately however, the individual Alphabet stocks rank fourth ($0.92 trillion) and sixth ($0.85 trillion) for their market cap in the S&P 500 index among the individual stock listings.

The undivided Amazon ranks third for individual stocks with a market cap of nearly $1.5 trillion. Tesla ranks fifth at $0.91 trillion, with its market cap squeezing in between the two classes of Alphabet shares. Facebook came in seventh at $0.85 trillion, graphics chipmaker Nvidia was eighth at $0.77 trillion, followed by re-insurer/conglomerate Berkshire Hathaway at $0.57 trillion.

Closing out the list, United Healthcare had a market cap of just under $0.50 trillion, edging out JP Morgan Chase (NYSE: JPM), which it replaced in the S&P 500's top 10 stocks since our August 2021 update.

References

Standard and Poor. S&P 500 Index Earnings and Estimates. [Excel Spreadsheet]. Accessed 31 December 2021.

Standard and Poor. S&P Market Attributes. [Excel Spreadsheet]. Accessed 31 December 2021.

Slickcharts. S&P 500 Companies by Weight. [Online Database]. Accessed 31 December 2021.

Ycharts. S&P 500 Market Cap. [Online Database]. Accessed 31 December 2021.