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Stocks can come in all shapes and sizes, but the biggest stocks are known as mega caps, referring to stocks with the largest market capitalizations, or market values. While there’s no firm definition, mega cap stocks are generally thought to be companies with market values above $200 billion and typically conduct business around the world.
Here’s what you should know about mega cap stocks including the largest ones today.
What is a mega cap stock?
A mega cap stock is typically defined as a company with a market capitalization, or the value of its outstanding shares, above $200 billion, though the definition can vary depending on the market environment. You may have heard of small-cap, mid-cap and large-cap stocks, but the mega cap label is reserved for the very biggest companies. In fact, some mega cap companies may resemble countries more than companies.
Mega cap stocks are typically well-established companies with at least tens of billions of dollars in revenue. Some may be well recognized brands such as Apple, Amazon and Tesla, while others might be less well known such as Berkshire Hathaway or UnitedHealth Group. Mega cap stocks tend to do business globally and may have operations across many different regions of the world.
In index funds that track broad stock market indices such as the S&P 500, mega cap stocks will make up the largest percentage of the fund’s portfolio. Apple and Microsoft combined to make up more than 13 percent of Vanguard’s S&P 500 ETF at the end of the first quarter of 2023. Investors may already have large exposure to these companies in their portfolios without realizing it.
Top mega cap stocks
*Market cap data as of May 2, 2023; Revenue as of most recent fiscal year
1. Apple (AAPL)
Apple built its business on the success of popular products like the iPhone, iPad, AirPods and more. It sells these products around the world and generates revenue of nearly $400 billion annually. Many of its customers are extremely brand loyal, purchasing the company’s latest products year after year.
Market cap: $2.67 trillion
Annual revenue: $394.3 billion
2. Microsoft (MSFT)
Microsoft is a technology company that develops software, services, devices and solutions for its many customers. Most people are familiar with its suite of Office products such as Microsoft Word and Excel, but it also has a growing cloud business and owns the social networking site LinkedIn.
Market cap: $2.27 trillion
Annual revenue: $198.3 billion
3. Alphabet (GOOGL and GOOG)
Most people are familiar with Alphabet’s main business: the Google search engine, which generates billions of dollars in advertising revenue for the company. Alphabet also owns YouTube, Google Cloud and has several smaller businesses it calls “other bets” that it hopes will eventually become sizable contributors to its overall business.
Market cap: $1.34 trillion
Annual revenue: $282.8 billion
4. Amazon (AMZN)
Amazon operates a vast online retail business as well as a cloud business known as Amazon Web Services. Amazon sells memberships that allow customers to receive free two-day shipping on products and gives them access to its video-streaming service along with other benefits.
Market cap: $1.06 trillion
Annual revenue: $514 billion
5. Berkshire Hathaway (BRK.B)
Berkshire Hathaway is led by legendary investor Warren Buffett and owns businesses across the economic spectrum including auto-insurer Geico, the BNSF railroad, energy and utility businesses and numerous insurance and reinsurance operations.
Market cap: $725.8 billion
Annual revenue: $302.1 billion
6. NVIDIA (NVDA)
Nvidia builds graphic-processing units, which are used in images, animation and gaming, which requires high-performing chips. The company also makes the technology that powers a variety of devices and technologies such as those that use automated and virtual reality.
Market cap: $696.8 billion
Annual revenue: $27 billion
7. Meta Platforms (META)
Meta Platforms, previously known as Facebook, is the largest social networking company in the world and operates platforms such as Facebook, Instagram and WhatsApp. Meta earns money by selling ads on its platforms, which have proven to be more effective than traditional forms of advertising.
Market cap: $613.1 billion
Annual revenue: $116.6 billion
8. Tesla (TSLA)
Tesla is a leader in the electric-vehicle industry and sells two of the most popular EV models in the U.S. The company is led by Elon Musk, who also purchased Twitter in 2022. Tesla’s stock has been volatile in recent years, rising from less than $30 in 2020 to more than $400 in late 2021. As of May 2023, its shares traded for about $163.
Market cap: $520.6 billion
Annual revenue: $81.5 billion
9. Visa (V)
Visa is a payments company and its networks help facilitate payments between consumers and businesses around the world. In its 2022 fiscal year, Visa processed 192.5 billion transactions and generated payments volume of $11.6 trillion in about 160 different currencies.
Market cap: $475.4 billion
Annual revenue: $29.3 billion
10. UnitedHealth Group (UNH)
UnitedHealth Group is one of the largest healthcare companies in the U.S. and operates a managed care business as well as a pharmacy benefits manager, urgent care centers, surgical centers and more.
Market cap: $459.6 billion
Annual revenue: $324.2 billion
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.