BKNG Stock – Big 5 Tech Stocks Now Account for 23% of the S&P 500
The biggest keep getting bigger and more dominant.
The five technology giants that dominate the
S&P 500 index
(FB)—accounted for a combined 22.9% of the index Friday, an apparent record. The data are from S&P Dow Jones Indices.
Rarely has the S&P 500 been so concentrated at the top. The Big Five were a combined 21.7% at the end of 2020.
At year-end 2019, the five largest stocks in the index totaled 17.2% of the index. At that time,
(BRK.B) was No. 5., not Facebook, which now ranks fifth. At year-end 2018, the top five were 15.4% of the S&P 500 index (Berkshire again was fifth).
It is notable that at the end of 1999, right before the peak in tech stocks, the top five companies were 16.8% of the S&P 500. Those five stocks in order of size were Microsoft,
General Electric (GE),
So far this year, Microsoft (up 30.2% through Friday), Alphabet (up 57.3% based on the nonvoting shares, GOOG) and Facebook (up 35.4%) are powering the leaders. Apple and Amazon were up about 12% year-to-date through Friday, behind the S&P 500’s 17.5% gain.
In early trading Monday, four of the five are higher. Apple was up 81 cents, to $149.37; Microsoft was down $1.73, to $287.94; Alphabet was up $6.68, to $2,762.88, based on the nonvoting GOOG shares; Amazon was up $20.79, to $3,677.43 and Facebook gained $3.47, to $373.26.
S&P Dow Jones Indices classifies only Apple and Microsoft as tech companies, while Facebook and Alphabet are in the communications sector and Amazon is in the consumer discretionary group of the S&P 500.
The strength in the tech giants comes even as the Biden administration gears up to take aim at them based on their size and supposedly anticompetitive behavior.
Investors aren’t too concerned judging from the action in the stocks.
Write to Andrew Bary at [email protected]