Want to see just how badly stocks like Tesla have fallen to pieces? Just look at the new top 10 most valuable companies in the S&P 500 — it's almost an entirely different list this year.
Gone are Tesla, Nvidia, Meta Platforms and JPMorgan Chase. And in are Johnson & Johnson, Exxon Mobil, Visa and Walmart. In fact, half the top 10 most valuable companies in the S&P 500 are new this year.
Ramifications for such upheaval are giant as trillions of dollars are benchmarked or invested in the S&P 500. And the most valuable stocks hold the largest sway in the index.
Out With The Old: Tesla's Amazing Implosion
Tesla is one of the most dramatic examples of the shake-up at the top of the S&P 500. Falling 68% this year, the company that was the fifth most valuable U.S. company in January isn't even in the top 10 anymore. It ranks just thirteenth now, with a market value of $357 billion. Tesla's value is down $707 billion this year.
But the plunge of Meta Platforms is fascinating, too. Shares of the social media giant stumbling to pivot into virtual reality are down 66% this year, erasing $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 been watching Tesla's recent slide with a bit of amazement, if not morbid fascination," said Nicholas Colas of DataTrek Research. "The stock is now down (more than 60%) on the year, vying with Meta/Facebook as the worst Big Tech stock blowup of 2022."
In With The New: Welcoming New S&P 500 Titans
Just as the market has tossed out some top 10 members, others rose to take their places.
Exxon Mobil has enjoyed the most meteoric rise in the S&P 500. The energy giant jumped this year almost like tech stocks did in the boom. Shares of the energy giant soared 80% this year, adding $195 billion in market value. That surge in market value — more than with 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 only ranked 27th most valuable in the S&P 500 a year ago.
It's stunning to see Exxon Mobil coming back so quickly. It wasn't even in the S&P 500's top 10 since 2018 (when it was ninth). But this is a company that was once dominant. It was the very most valuable S&P 500 company as recently as 2011, until Apple surpassed it in 2012.
Health Care Rises
Another interesting trend among the new top 10 in the S&P 500 is the rise of health care. Two of the most valuable stocks in the S&P 500 are now from the health care sector: UnitedHealth and Johnson & Johnson.
Shares of UnitedHealth are up 6.2% this year, an impressive feat in a year the S&P 500 is off nearly 20%. The health care giant now ranks No. 6 in the S&P 500, up from No. 9 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 S&P 500's seventh most valuable company, up from No. 12 a year ago.
Stability At The Top
That's not to say the S&P 500's top 10 is completely turned upside down. Apple is still the S&P 500's most valuable stock despite losing 27% of its value this year. It's still valued at more than $2 trillion. And rounding out the top four are Microsoft, Alphabet and Amazon.com.
But guess who's coming on strongest? Warren Buffett's Berkshire Hathaway. Shares are up 2.6% this year. That might not sound like much, adding $8 billion in market value this year. But it's enough to make Berkshire Hathaway the No. 5 most valuable company, ahead of Tesla and Meta. Berkshire Hathaway was No. 8 in January.
And like Exxon Mobil, Walmart is rejoining the S&P 500's top 10 as No. 10. Walmart is back, after dropping out of the top 10 in 2020.
Looks like the new world order isn't entirely new, after all.
S&P 500: The New Top 10
| Company | Ticker | YTD change | Market value (in trillions) | Market value rank on Jan. 1 | Sector |
|---|---|---|---|---|---|
| Apple | -26.8% | $2.1 | 1 | Information Technology | |
| Microsoft | -29.5% | $1.8 | 2 | Information Technology | |
| Alphabet | -39.7% | $1.1 | 3 | Communication Services | |
| Amazon.com | -49.9% | $0.9 | 4 | Consumer Discretionary | |
| Berkshire Hathaway | 2.6% | $0.7 | 8 | Financials | |
| UnitedHealth | 6.2% | $0.5 | 9 | Health Care | |
| Johnson & Johnson | 3.9% | $0.5 | 12 | Health Care | |
| Exxon Mobil | 80.0% | $0.5 | 27 | Energy | |
| Visa | -4.8% | $0.4 | 11 | Information Technology | |
| Walmart | -0.6% | $0.4 | 14 | Consumer Staples |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @mattkrantz
