Tesla's loss of $328.3 billion this year in stock value certainly hurts. But it's amazingly only the second-largest market value loss in the S&P 500.
The dubious distinction of shredding the most value this year goes to Apple. The Johnny-come-lately to AI's market value is down $433.5 billion this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
To be sure, Apple's stock's 14% drop this year is smaller than Tesla's nearly 42% tumble. But given the sheer size of Apple, at $2.6 trillion, the loss in dollar terms is the largest in the S&P 500 by far.
Apple's lack of an AI strategy is hurting its shares. "We don't expect insights surrounding AI initiatives until AAPL holds its Developer's Conference on June 10," said CFRA analyst Angelo Zino.
Plenty Of Pain In S&P 500
The S&P 500's more than 6% climb this year is getting the attention for minting more than $2.4 trillion in stock wealth this year. But below the surface, there's plenty of pain.
So far this year, 191 stocks in the S&P 500 lost value. All told, they've erased a massive $1.7 trillion in value. And much of those losses are due to some giants stumbling, like Tesla. Dropping out of the top 10 most valuable S&P 500 stocks is just the latest embarrassment for Tesla. And the company's disappointing first-quarter revenue and profit did little to soothe concerns.
Analysts think the company will only earn $2.73 a share in 2024, down nearly 13% from 2023.
Falling Like A Rotten Apple
Apple's big market value drop is a different story. Analysts still think the company's profit will rise more than 7% this fiscal year. But the fear here is the company is getting left behind in AI. Nvidia, Meta Platforms, Amazon.com and Microsoft, all big players in AI, added the top four amounts of value to the S&P 500 this year.
Nvidia alone added $311.8 billion in market value this year. Compare that to the $65 billion in market value lost by Intel, the chip company most at risk from disruption for AI-ready microprocessors.
Perhaps Apple and Tesla will ultimately shake off their malaise. But in the meantime, it's a costly wait.
Biggest S&P 500 Value Drops This Year
| Company | Ticker | Market value lost YTD ($ billions) |
|---|---|---|
| Apple | -$433.4 | |
| Tesla | -$328.3 | |
| Intel | -$65.8 | |
| Adobe | -$62.5 | |
| Boeing | -$54.5 | |
| UnitedHealth Group | -$39.6 | |
| Prologis | -$26.2 | |
| NIKE | -$23.3 | |
| Zoetis | -$22.3 | |
| Accenture | -$20.8 |
