Are you curious about the biggest players in the stock market? Let’s dive into the top 10 S&P 500 stocks and see how they’ve been performing. We’ll break down the ones that climbed the ranks and those that experienced a dip.
The Standard & Poor’s 500 Index, or simply the S&P 500, represents a collection of 503 large-cap U.S. stocks. This index carries a lot of weight—it makes up a whopping 80% of the total market value of U.S. equities.
This means it covers most of the major players in the U.S. stock market, making it a key reflection of the market’s performance as a whole. In fact, it’s often seen as the default U.S. stock index.
The influence of each stock is not equal in this index. Larger stocks have a bigger say, as they’re weighted by their market capitalization. This dynamic duo—size and market cap—has a significant impact on the index’s daily movement and long-term trends.
As of July 31, 2023, the 10 largest stocks contribute to a whopping 30.6% of the index’s overall market value. That’s substantial!
What does this mean for investors like you? Well, understanding these 10 giants is crucial. They can drive the market’s ups and downs, so keeping an eye on them is like having your finger on the pulse of the broader market.
Let’s get down to business. Here’s our take on the 10 heaviest hitters in the S&P 500. All the numbers are fresh as of August 25, 2023. We’ve also got the market capitalizations from August 28, 2023.
Plus, to give you the full picture, we’re throwing in the trailing 12-month figures for revenue and net income—thanks to YCharts. The data’s as of March 31, 2023, unless we mention otherwise.
Key Points to Remember:
- The S&P 500 is a go-to index for tracking major U.S. companies.
- It’s like a snapshot of the whole U.S. stock market.
- Big players influence both daily moves and long-term trends.
- The top dogs in the index are Apple, Microsoft, and Amazon.
- And there’s more! We’ll also cover NVIDIA, Alphabet, Berkshire Hathaway, Meta (previously known as Facebook), UnitedHealth, and Tesla, all part of the S&P 500’s top 10 lineup.
| Rank | Company | Index Weighting | Market Cap | Revenue (TTM) | Net Income (TTM) | Description |
|---|---|---|---|---|---|---|
| 1 🥇 | Apple (AAPL) | 7.16% | $2.81 trillion 💰 | $385.10 billion 💼 | $94.32 billion 💹 | Major producer of hardware and software products, known for iPhone, Mac, iPad, and more. 📱💻 |
| 2 🥈 | Microsoft (MSFT) | 6.51% | $2.41 trillion 💰 | $207.59 billion 💼 | $69.02 billion 💹 | Provides computer hardware, software, Windows OS, Microsoft Office, Azure cloud platform, and Xbox. 🖥️🎮 |
| 3 🥉 | Amazon (AMZN) | 3.22% | $1.37 trillion 💰 | $524.90 billion 💼 | $4.29 billion 💹 | Online retailer diversified into Amazon Web Services, Whole Foods, and more. 🛒🌐 |
| 4 | NVIDIA (NVDA) | 3.09% | $1.16 trillion 💰 | $25.88 billion 💼 | $4.79 billion 💹 | Develops GPUs for graphics, AI, and machine learning; known for GeForce brand. 🎮📈 |
| 5 | Alphabet Class A (GOOGL) | 2.09% | $1.66 trillion 💰 | $284.61 billion 💼 | $58.59 billion 💹 | Parent company of Google, provides various online services including YouTube. 📺🔍 |
| 6 | Alphabet Class C (GOOG) | 1.81% | $1.66 trillion 💰 | $284.61 billion 💼 | $58.59 billion 💹 | Part of Alphabet, trades on S&P 500, similar services to Class A. 📈🔍 |
| 7 | Tesla (TSLA) | 1.74% | $758 billion 💰 | $86.04 billion 💼 | $11.78 billion 💹 | Known for electric cars, also sells solar panels and batteries. 🚗🔋 |
| 8 | Berkshire Hathaway (BRK.B) | 1.72% | $775.42 billion 💰 | $285.51 billion 💼 | $7.23 billion 💹 | Holding company with diverse investments, including insurance, energy, and more. 🏢🔮 |
| 9 | Meta Platforms Class A (META) | 1.71% | $746.88 billion 💰 | $117.35 billion 💼 | $21.44 billion 💹 | Formerly Facebook, owns major social media platforms and virtual reality equipment. 🌐👥 |
| 10 | UnitedHealth Group (UNH) | 1.24% | $457.39 billion 💰 | $345.23 billion 💼 | $21.11 billion 💹 | Health insurance and pharmacy benefit management corporation, operates under Optum brand. 💉💊 |
What you'll learn:
1️⃣ Apple (AAPL) 🍏
Index Weighting: 7.16%
Market Cap: $2.81 trillion
Revenue (Trailing 12-Month): $385.10 billion
Net Income (Trailing 12-Month): $94.32 billion
Apple is a technology giant renowned for its diverse range of hardware and software products. Its influence extends across the consumer tech landscape.
While most recognizable for its iconic Apple iPhone line, the company also offers other popular brands such as Mac computers and iPad tablets.
Beyond hardware, Apple provides digital experiences through platforms like Apple Music and Apple TV, enriching the multimedia landscape for users worldwide.
2️⃣ Microsoft (MSFT) 🪟
Index Weighting: 6.51%
Market Cap: $2.41 trillion
Revenue (Trailing 12-Month): $207.59 billion
Net Income (Trailing 12-Month): $69.02 billion
Microsoft stands as a prominent figure in the tech sector, crafting an array of computer hardware and software products catering to both personal and business needs.
The company’s legacy in the industry spans decades, with flagship offerings including the widely-used Windows operating system, the comprehensive Microsoft Office suite, and the popular Xbox gaming system.
Venturing into the realm of cloud computing, Microsoft’s Azure platform has established the company as a significant player in delivering advanced cloud services to enterprises and individuals alike.
3️⃣ Amazon (AMZN) 📦
Index Weighting: 3.22%
Market Cap: $1.37 trillion
Revenue (Trailing 12-Month): $524.90 billion
Net Income (Trailing 12-Month): $4.29 billion
Amazon, initially recognized as an online retailer offering a diverse array of products, has undergone substantial diversification in its business pursuits.
Beyond its e-commerce roots, Amazon has delved into the expansive realm of cloud computing through its widely renowned Amazon Web Services (AWS).
Additionally, the company has ventured into the realm of physical retail by operating the Whole Foods chain, serving as a bridge between the digital and brick-and-mortar retail spaces.
Notably, Jeff Bezos, the founder and long-standing chief executive officer (CEO), handed over the CEO mantle to Andrew Jassy on July 5, 2021.
Jeff Bezos transitioned to the role of executive chair, while Andrew Jassy, formerly the CEO of Amazon Web Services, took the reins as CEO.
4️⃣ NVIDIA (NVDA) 🎮
Index Weighting: 3.09%
Market Cap: $1.16 trillion
Revenue (Trailing 12-Month): $25.88 billion
Net Income (Trailing 12-Month): $4.79 billion
NVIDIA, a renowned tech company, specializes in the development and production of Graphics Processing Units (GPUs). GPUs, pivotal computer chips in graphics creation, have historically been crucial for visual design and gaming.
In recent times, however, the demand for GPUs has surged across diverse applications, such as cryptocurrency mining and the advancement of artificial intelligence (AI) and machine learning technologies.
NVIDIA’s consumer-oriented GPUs under the GeForce brand have contributed to its notable standing in the industry.
5️⃣ Alphabet Class A (GOOGL) 🔍
Index Weighting: 2.09%
Market Cap: $1.66 trillion
Revenue (Trailing 12-Month): $284.61 billion
Net Income (Trailing 12-Month): $58.59 billion
Alphabet, the parent company of the search-engine giant Google, presides over an array of services, including the widely used Google search engine and the video-sharing platform YouTube.
Notably, Alphabet employs a dual-class stock structure, offering A and C shares. A shares often trade at a slight premium and hold voting rights, while C shares lack voting privileges.
Both share classes are traded on the S&P 500, with Alphabet’s combined presence shaping a significant portion of the index’s composition.
6️⃣ Alphabet Class C (GOOG) 🔎
Index Weighting: 1.81%
Market Cap: $1.66 trillion
Revenue (Trailing 12-Month): $284.61 billion
Net Income (Trailing 12-Month): $58.59 billion
(See above for company description)
7️⃣ Tesla (TSLA) ⚡
Index Weighting: 1.74%
Market Cap: $758 billion
Revenue (Trailing 12-Month): $86.04 billion
Net Income (Trailing 12-Month): $11.78 billion
Tesla, an industry pioneer, specializes in electric vehicle manufacturing. Over 90% of its revenue and nearly all of its profit are derived from its car business.
Beyond vehicles, Tesla extends its influence by offering solar panels and batteries tailored for residential and commercial usage.
8️⃣ Berkshire Hathaway (BRK.B) 🏢
Index Weighting: 1.72%
Market Cap: $775.42 billion
Revenue (Trailing 12-Month): $285.51 billion
Net Income (Trailing 12-Month): $7.23 billion
Berkshire Hathaway, helmed by visionary CEO Warren Buffett, serves as a conglomerate encompassing a diverse range of investments.
The company’s expansive portfolio comprises insurance entities like GEICO, significant energy and utilities enterprises, a major railroad, notable consumer brands such as Dairy Queen, and manufacturing entities including aerospace parts manufacturer Precision Castparts Corp.
Berkshire Hathaway’s equity holdings further contribute to its influential position.
9️⃣ Meta Platforms Class A (META) 🌐
Index Weighting: 1.71%
Market Cap: $746.88 billion
Revenue (Trailing 12-Month): $117.35 billion
Net Income (Trailing 12-Month): $21.44 billion
Meta Platforms, previously known as Facebook, stands as the global leader in social networking. Holding the reins of the most influential social platform worldwide, Meta Platforms also oversees Instagram, a widely-used photo-sharing app, the messenger app WhatsApp, and Meta Quest, which deals in virtual reality equipment.
🔟 UnitedHealth Group (UNH) 🏥
Index Weighting: 1.24%
Market Cap: $457.39 billion
Revenue (Trailing 12-Month) as of June 30, 2023: $345.23 billion
Net Income (Trailing 12-Month) as of June 30, 2023: $21.11 billion
UnitedHealth Group, a prominent entity in the healthcare landscape, operates as both a health insurance provider and a pharmacy benefit management (PBM) corporation.
The company’s activities extend to healthcare services, including the implementation of health-related data analytics under its Optum brand.
➤ S&P 500 Stocks FAQ
Can I Invest in the S&P 500? 💼📈
Investing in the S&P 500 offers various avenues to choose from. Investment firms provide options that mirror the index’s performance.
Some common approaches include investing in mutual funds or exchange-traded funds (ETFs). ETFs, akin to stocks, trade on exchanges and are cost-efficient due to their lower fees.
For tailored guidance, consider conducting research or seeking advice from a financial expert.
Can I Buy the S&P 500? ❌📊
Directly purchasing shares or investing in the S&P 500 itself is not possible. The index comprises major U.S. companies, making it unfeasible for direct investment.
However, you can invest in instruments that replicate the index’s movement. Index funds and ETFs aim to mirror the index’s composition and returns.
What is the purpose of S&P 500? 📊📈
The S&P 500 gauges the performance of 500 of the largest U.S. corporations. Due to varying share classes, the index consists of 503 stocks.
Firms must meet specific criteria, including a market capitalization surpassing $14.5 billion, to earn a spot on the index. The collective market value of the top 10 constituents accounts for over 30% of the index’s total value.
➤ Final thoughts
The S&P 500 stands as one of the most closely monitored and followed indices on the global financial stage. Comprising 500 of the nation’s largest corporations, its immense significance stems from the colossal market values of these companies. This renders the index a key barometer for assessing the U.S. economy’s health and vitality.
For investors seeking to capitalize on potential returns, a prudent strategy is to explore acquiring shares in an index fund or an exchange-traded fund (ETF). These vehicles enable individuals to potentially benefit from the index’s performance while diversifying their investments.
