What Is Market Cap? Everything You Need To Know

For a better idea of the stocks you may want to add to your own portfolio, here’s a list of the types of capitalization investors will want to consider on Wall Street, from largest to smallest:

  • Mega-Cap

  • Large-Cap

  • Mid-Cap

  • Small-Cap

  • Micro-Cap

  • Nano-Cap

Mega-Cap

Aptly named, mega-cap stocks are far and away the largest companies (by market value) traded on today’s major indices, but what is a market cap for a company lucky enough to fit in this category? The traditional definition of a mega-cap stock is a business with a market cap of $200 billion or more. Not surprisingly, mega-cap stocks are rare company, as only a limited number of businesses are even capable of achieving such a high level of market capitalization.

For context, the following meg-cap stocks make up somewhere in the neighborhood of 20% of total market capitalization of the S&P 500:

  • Apple Inc. (NASDAQ: AAPL): $2.165 trillion market cap

  • Microsoft Corporation (NASDAQ: MSFT): $1.881 trillion market cap

  • Amazon, Inc. (NASDAQ: AMZN): $1.667 trillion market cap

  • Alphabet Inc. (NASDAQ: GOOG): $1.581 trillion market cap

  • Facebook, Inc. (NASDAQ: FB): $907.404 billion market cap

Large-Cap

Following in the footsteps of today’s mega-cap companies, large-cap stocks are those with a market cap between $10 billion to $200 billion. While still considered “blue chip,” large caps can vary significantly in market value. Some of the “smallest” large-cap stocks may hover around $10 billion; the largest ones, however, can border on their mega-cap counterparts. It is worth noting, however, that large-cap stocks aren’t synonymous with growth. At this point, stocks tend to level out, and investors are more attracted to their stability than growth trajectory. That’s not to say large-cap stocks can’t also be growth stocks, but rather that growth in this area is typically the exception and not the rule.

Some of the most popular large-cap stocks include, but are not limited to:

  • Starbucks Corporation (NASDAQ: SBUX): $135.198 billion market cap

  • MercadoLibre, Inc. (NASDAQ: MELI): $72.103 billion market cap

  • Chipotle Mexican Grill, Inc. (NYSE: CMG): $39.732 billion market cap

  • Booking Holdings Inc. (NASDAQ: BKNG): $93.573 billion market cap

  • Zillow Group, Inc. (NASDAQ: Z): $28.27 billion market cap

Mid-Cap

The market capitalization of mid-cap stocks ranges from $2 billion to $10 billion. Much smaller than both large- and mega-cap stocks, mid-cap businesses are typically nationally recognized. That said, while mid-cap stocks don’t carry the same market value as the previous businesses listed above, they tend to have more room to grow. If, for nothing else, the larger a company’s market cap, the more difficult time it will have growing. Of course, not all mid-caps increase in value; some are more susceptible to declines. Since mid-cap stocks aren’t as established as larger companies, they are more volatile.

Mid-cap stocks most people are familiar with include, but are not limited to:

  • Dropbox, Inc. (NASDAQ: DBX): $9.882 billion market cap

  • Ralph Lauren Corporation (NYSE: RL): $9.798 billion market cap

  • Kohl’s Corporation (NYSE: KSS): $9.501 billion market cap

  • ADT Inc. (NYSE: ADT): $7.898 billion market cap

  • Mattel, Inc. (NASDAQ: MAT): $7.774 billion market cap

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