The Trillion Dollar Stock Question

How many people do you know who are billionaires? Unless you are a billionaire, probably not too many. How many people do you know who run companies worth a trillion dollars?

Currently none, but that could change in August.

The last full week of July has presented us with three possible candidates for the trillion-dollar circle; the pinnacle of stock market mountain.

First up, Google, who leaped over $50 billion in market cap on July 23rd after releasing its earnings. That day its stock market value reached $875 billion for the first time. (1)

Next up is Amazon. After another blockbuster Prime Day on July 16th, the stock reached $1858. According to Reuters, the stock market value of the company broke through $900 billion, reaching $902b. Climbing to a current high of $1889 today after releasing its earnings yesterday, the company edged even closer to that $1 trillion mark. (2)

Last on our current list of top contenders for the $1 trillion mark is Apple. At $195, reached for the first time on July 26th, the stock market value of the company stands around $950 billion. (3)

Yet not every big tech celebrity has leaped on earnings. While one can jump $50 billion in a day, another can make history, getting caught in an avalanche of selling, losing over $100 billion in a day.

Facebook just had the worst day in stock market history, CNN, 7/26/18

Last week, Netflix dropped over $50/share the day after releasing its latest earnings on July 16th. (4)

Should traders who loaded up on the NYSE’s new FANG+ options, launched a little over a month ago on June 11th, be concerned because the index contains only 10 stocks, three of them being Netflix, Tesla, and Facebook? (5)

Are the millions of investors holding an active or index fund tracking the S&P 500 or NASDAQ 100 thinking how this type of “negative adjustment” might impact their own investment goals when the next bear sets in?

When we came over the top in 2000, Microsoft, Intel, and Cisco were dominant stocks in the NASDAQ 100. Between their 2000 highs and 2002 lows, they fell 65%, 80%, and 90% respectively.

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