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Evaluating the Immense Scale of Microsoft and Apple: Key Metrics and Comparisons


The leading tech giants, commonly referred to as the 'Magnificent Seven', have witnessed a year of remarkable gains, with Microsoft (MSFT) and Apple (AAPL) at the forefront in terms of market capitalization. The graph provided lists the top ten U.S. stocks by market capitalization, showcasing their current values. Microsoft and Apple stand out significantly, with Nvidia (NVDA) and Alphabet (GOOGL), parent of Google, trailing by over $1 trillion in the third and fourth positions.


Top 10 US Stocks by Market Capitalization


Source: Bloomberg as of February 14, 2024


The scale of MSFT and AAPL is so vast that their market capitalizations surpass those of almost all other countries. Considering the table below, and realize that the majority of Hong Kong stocks are listed Chinese companies, only three non-US countries surpass them in size: China, Japan, and India. Each company's value exceeds the total market capitalization of all listed companies in the UK, France, Canada, or Germany. Even when combining the market caps of the bottom 69 countries, their total value remains less than that of AAPL or MSFT individually.


Top 11 Countries by Market Capitalization Plus MSFT & AAPL

Country

Market Capitalization (trillion)

United States

$49.65

China

$10.89

Japan

$5.47

India

$5.00

Hong Kong

$3.97

Microsoft

$3.04

Apple

$2.84

France

$2.82

UK

$2.82

Canada

$2.64

Saudi Arabia

$2.43


When comparing MSFT and AAPL to the world's major stock exchanges, a similar narrative unfolds. Microsoft's worth exceeds that of 71 global stock exchanges, ranking seventh if the NYSE and Nasdaq are excluded. Together, their combined value nearly equals the total value of all stocks in Japan.


Top 20 Global Stock Exchanges by Market Capitalization Plus MSFT & AAPL

Exchange

Market Capitalization (trillion)

NYSE

$25.56

Nasdaq - US

$23.41

Euronext

$6.89

Shanghai Stock Exchange

$6.52

Japan Exchange Group

$6.15

National Stock Exchange of India

$4.34

Shenzhen Stock Exchange

$4.29

Hong Kong Exchanges and Clearing

$3.97

TMX Group

$3.09

Microsoft

$3.04

Saudi Exchange (Tadawul)

$3.02

Apple

$2.84

Nasdaq Nordic and Baltics

$2.12

Deutsche Boerse AG

$2.07

SIX Swiss Exchange

$2.04

Korea Exchange

$1.97

Taiwan Stock Exchange

$1.85

ASX Australian Securities Exchange

$1.79

Tehran Stock Exchange

$1.71

Johannesburg Stock Exchange

$1.03


It's not only in market capitalization that these tech behemoths dominate. The liquidity and trading volume of their stocks also stand out. More money is traded in AAPL in a given month than on the majority of the world's stock exchanges. The monthly traded value of MSFT surpasses that of Europe's major cross-border exchange, Euronext, and all stocks traded electronically in Germany and Australia combined.


December 2023 Traded US$ Value by Top 20 Global Exchanges plus MSFT & AAPL

Exchange

US Dollars Traded (millions)

NYSE

$2,384,644

Nasdaq - US

$2,096,508

Shenzhen Stock Exchange

$1,388,866

Cboe Global Markets

$1,286,773

Shanghai Stock Exchange

$971,785

Japan Exchange Group

$570,737

Korea Exchange

$272,435

National Stock Exchange of India

$247,548

Apple

$206,725

Taiwan Stock Exchange

$198,706

Microsoft

$194,155

Euronext

$182,869

TMX Group

$179,114

Hong Kong Exchanges and Clearing

$164,734

Cboe Europe

$152,066

MIAX Exchange Group

$136,056

B3 - Brasil Bolsa Balcão

$93,358

Deutsche Boerse AG

$85,476

Borsa Istanbul

$74,246

ASX Australian Securities Exchange

$71,428


Only time will tell if these behemoths retain their leading positions in market capitalization and liquidity. What’s remarkable is how two tiny computer rivals from the 1980s have risen to occupy such an important place in our daily lives and in our portfolios.



Modelist Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.




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