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There's a new world order when 4 big stocks like Tesla fall apart | Investor's Business Diary

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Want to see how much stocks like tesla (TSLA) fell apart? Just look at the new 10 most valuable companies in the S&P 500 — it’s an almost entirely different list this year.


Gone are Tesla, nvidia (NVDA), Metaplatforms (GOAL) and JPMorgan Chase (JPM). and in sane Johnson & Johnson (JNJ), Exxon Mobil (XOM), Visa (V) and walmart (WMT). In fact, half of the top 10 most valuable companies in the S&P 500 are new this year.

The ramifications for such a turnaround are huge, as trillions of dollars are referenced or invested in the S&P 500. And the most valuable stocks wield the most influence on the index.

Out with the Old Man: Tesla’s Incredible Implosion

Tesla is one of the most dramatic examples of the turnaround at the top of the S&P 500. Down 68% this year, the company that was America’s fifth most valuable company in January isn’t even in the top 10 anymore. It only ranks thirteenth now, with a market cap of $357 billion. Tesla’s value has dropped by $707 billion this year.

But the Meta Platforms dive is also fascinating. Shares of the social media giant struggling to pivot to virtual reality are down 66% this year, wiping out $609 billion. That means the company, which in January was the sixth most valuable in the S&P 500, now ranks just 19th at $307 billion.

“Like many people, we have watched Tesla’s recent slip up with a little awe, if not morbid fascination,” said Nicholas Colas of DataTrek Research. “Stocks are now down (over 60%) on the year, competing with Meta/Facebook as Big Tech’s worst stock boom of 2022.”

With the New: Welcoming the S&P 500’s New Titans

Just as the market has eliminated some of the top 10 members, others have risen to take their places.

Exxon Mobil had the most meteoric rise in the S&P 500. The energy giant has bounced this year much like tech stocks did in the boom. The energy giant’s shares have soared 80% this year, adding $195 billion to market value. That increase in market cap — more than any stock in the S&P 500 — makes Exxon Mobil the eighth most valuable stock in the S&P 500. It’s remarkable to think that it was only the 27th most valuable stock in the S&P 500 a year ago.

It’s impressive to see Exxon Mobil coming back so quickly. It hadn’t even been in the top 10 of the S&P 500 since 2018 (when it was ninth). But this is a company that was once dominant. It was the most valuable S&P 500 company until 2011, until Apple overtook it in 2012.

Health care goes up

Another interesting trend among the S&P 500’s new top 10 is the rise of healthcare. Two of the most valuable stocks in the S&P 500 are now in the healthcare sector: UnitedHealth and Johnson & Johnson.

UnitedHealth shares are up 6.2% this year, an impressive feat in a year when the S&P 500 is down nearly 20%. The healthcare giant now ranks 6th on the S&P 500, up from 9th at the start of the year. And Johnson & Johnson is new to the top 10. Shares are up 3.9% this year, making the company the seventh most valuable company in the S&P 500, up from 12th a year ago.

Stability at the top

That’s not to say that the top 10 of the S&P 500 is completely turned on its head. Litter (AAPL) is still the most valuable stock in the S&P 500, despite having lost 27% of its value this year. It is still valued at over $2 trillion. And rounding out the first four are Microsoft (MSFT), Alphabet (Google (AMZN).

But guess who’s coming on stronger? by Warren Buffett Berkshire Hathaway (BRKA). The shares are up 2.6% this year. That might not seem like a lot, adding $8 billion to market cap this year. But it’s enough to make Berkshire Hathaway the fifth most valuable company, ahead of Tesla and Meta. Berkshire Hathaway was ranked 8th in January.

And like Exxon Mobil, Walmart is returning to the top 10 of the S&P 500 as No. 10. Walmart is back, after dropping out of the top 10 in 2020.

After all, it seems that the new world order is not entirely new.

S&P 500: the new Top 10

Company ticker YTD change Market value (in trillions) Market cap rating on January 1st Sector
Litter (AAPL) -26.8% $2.1 1 Information Technology
Microsoft (MSFT) -29.5% $1.8 two Information Technology
Alphabet (GOOGL) -39.7% $1.1 3 communication services (AMZN) -49.9% $0.9 4 discretionary consumer
Berkshire Hathaway (BRKA) 2.6% $0.7 8 finance
UnitedHealth (UNH) 6.2% $0.5 9 Health care
Johnson & Johnson (JNJ) 3.9% $0.5 12 Health care
Exxon Mobil (XOM) 80.0% $0.5 27 Energy
Visa (V) -4.8% $0.4 11 Information Technology
walmart (WMT) -0.6% $0.4 14 Consumer goods
Sources: S&P Global Market Intelligence, IBD