Investing

Putting the Massive Losses in America's 10 Largest Companies in Context

The bloodbath that created the major panic selling on Monday, March 9, 2020, was caused by a double-whammy of the continued spreading of the coronavirus outbreak coinciding with a fresh, all-out oil price war between Russia and Saudi Arabia. Monday’s selling pressure took the Dow Jones industrials and the S&P 500 down by nearly 20% from their recent highs. This effectively puts the 10%+ market correction into bear market territory, with a drop of almost 20% from the all-time highs. Unfortunately, all that has happened in less than a month.

24/7 Wall St. wanted to review the top 10 components of the S&P 500 Index by market capitalization to see just what is happening here. Monday’s blowout lows have more or less created a bear market on the average mega-cap stock. While this doesn’t mean that the bull market cannot be revived, investors need to remember that a 20% drop from the peak requires a 25% rally to get back to the prior peak. That also means that $600 billion or more has been lost in combined market cap dollars in just these 10 names over the past few weeks. That also means that close to the combined value of the bottom two stocks has magically vanished from these 10 stocks alone.

24/7 Wall St. has outlined how much each company has dropped during the panic-Monday and how much each has fallen from its highs that were generally achieved just as recently as February. We also included dividend yields and market caps to show just how much each company’s value has dropped.

Alphabet Inc. (NASDAQ: GOOGL) closed down over 6.1% at $1,215.79 on Monday, and that is down about 20.6% from its recent high of $1,530.74. The search and mobile operating system giant, and moonshots giant, has an $837 billion market cap and no dividend.

Amazon.com Inc. (NASDAQ: AMZN) shares fell by 5.3% to $1800.61 on Monday, and that is down about 16.4% from its recent high of $2,185.95. Amazon has an $896 billion market cap, and it pays no dividend yield.

Apple Inc. (NASDAQ: AAPL) closed down 7.9% at $266.17 on Monday. That’s down 18.8% from its high of $327.85. The iPhone maker has a $1.15 trillion market cap and pays a 1.05% dividend yield.

Berkshire Hathaway Inc. (NYSE: BRK-B) shares closed down over 6.2% at $193.13 on Monday, and that’s down 16.6% from its high of $231.61. Warren Buffett’s top conglomerate in the world has a $471.5 billion market cap, and while Buffett likes to receive dividends, he refuses to pay them to Berkshire Hathaway shareholders after all this time.

Facebook Inc. (NASDAQ: FB) closed down 6.4% at $169.50 on Monday, down 24.4% from its high of $224.20. The social media giant pays no dividend, and its market cap is $472 billion.

Johnson & Johnson (NYSE: JNJ) is the top health care player by market cap. Its shares closed down “only” 3.9% at $136.44 on Monday, but that’s down 11.7% from its recent high of $154.50. It also has a $359 billion market cap and has a 2.7% dividend yield.

JPMorgan Chase & Co. (NYSE: JPM) closed down a sharp 13.5% at $93.44 on Monday, for a drop of 33.8% from its $141.10 recent high. Its market cap is $272 billion, and it comes with a 3.15% yield.

Microsoft Corp. (NASDAQ: MSFT) closed down 6.8% at $150.62, which is down 21% from its peak of $190.70. The software and cloud computing giant has a $1.14 trillion market cap and a 1.2% dividend yield.

Visa Inc. (NYSE: V) was down about 7.2% at $171.12, and that is down about 20.1% from the recent high of $214.17. The credit card processing giant has a $374 billion market cap and a 0.6% dividend yield.

Walmart Inc. (NYSE: WMT) saw its stock close down less than 0.1% at $117.16 on Monday, with a 1.85% yield and a $336 billion market cap. That’s down only about 6.5% from its high of $125.38. The world’s largest retail giant has a dividend yield of 1.85% and a market cap of $336 billion.