(BFM Bourse) – The combined value of these seven American companies on the stock market would form the second largest stock market in the world, behind the United States, according to Deutsche Bank.
The “magnificent seven” of Wall Street have reigned supreme (or almost) over the stock markets since 2023. This expression, a reference to a 1960s western, designates the Gafam (Google, Amazon, Facebook, Apple, Microsoft) to which we add Nvidia and Tesla. Which therefore gives seven stocks which have, almost alone, fueled the 24% rise in the S&P 500 in 2023.
Their supremacy in the financial markets is such that these seven stocks combined to date have a market capitalization of around $13.1 trillion, according to a note published by Deutsche Bank last week. Which would make this group the second largest stock exchange in the world, ahead of China (Hong Kong included) and behind the United States, underlines the German bank.
The establishment across the Rhine also reports that these Magnificent Seven weigh twice as much as all the values listed in Japan, the third largest stock market in the world, with a global capitalization of 6,200 billion dollars.
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Microsoft bigger than the CAC 40
It must be said that taken individually, the Magnificent Seven display stock market valuations that are dizzying. Microsoft, the IT services juggernaut, joined the very exclusive club (apart from them there was only Apple) of companies worth 3,000 billion dollars on the stock market at the end of January. By surpassing this symbolic milestone, Microsoft has above all dethroned Apple from the prestigious position of the world’s largest market capitalization, supported by good financial results, thanks to the dynamics of its dematerialized computing services (cloud) with its flagship brand Azure.
The IT giant (like Apple) weighs more than the market value of all CAC 40 companies, which amounts to 2,700 billion dollars, according to data from companiesmarketcap.com.
Apple and Microsoft, taken individually, also have market capitalizations close to those of “Saudi Arabia ($2.9 trillion) and the United Kingdom, also at $2.9 trillion,” continue Deutsche Bank specialists.
“Nvidia the Taylor Swift of Nasdaq”
What about Nvidia, which has gained nearly 400% since January 1, 2023, driven by the market’s enthusiasm for generative artificial intelligence (AI)? For the past week, the graphics processor specialist has been in fourth place among the most powerful companies on the stock market, with a capitalization approaching $1.8 trillion. The group grilled Amazon ($1.760 billion) and Alphabet ($1.753 billion). Only the Saudi oil group Saudi Aramco ($2.062 billion), and therefore Apple and Microsoft, are still ahead. Nvidia is also worth more than the stock exchanges of South Korea or Australia.
“Nvidia is the Taylor Swift of Nasdaq,” Alexandre Baradez, head of market analysis at IG France, dared to declare on BFM Bourse this Monday. A way of illustrating the fact that Nvidia continues to climb and has taken on incredible importance in the market. Like the singer capable of selling millions of records or moving thousands of people into stadiums (her boyfriend is an American football player) while these same people don’t like sport. Which says a lot about his influence.
Another interesting fact from the study: Deutsche Bank indicates that Apple ($101 billion) generates each year around 60% of the profits made by French listed companies ($167 billion) or more than 50% of those of German companies listed on the stock exchange ($188 billion). And the Magnificent 7 combined make about as much profit, or $360 billion, as Japanese companies ($383 billion) and about half of that generated by Chinese listed companies.
Sabrina Sadgui – ©2024 BFM Bourse
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