Markets have rebounded significantly after a tumultuous two months of COVID-19 economic panic in March and April. While top indices like the S&P 500 are just starting to creep into positive territory for the year, large tech companies are sitting pretty with enormous gains.
The biggest players in the S&P 500 are still growing, despite the overall index being up just 4 percent on the year. Since the beginning of the year, Netflix and Amazon have seen their stock prices both grow by 44 percent and 67 percent, respectively, while Microsoft has had a 31 percent growth. Apple, which started their recovery slower than other tech companies, has surged to 50 percent growth on the year in stock price. Other top tech companies like Facebook and Alphabet have also both seen overall gains in the double-digits.
Back in February, these companies accounted for over 20 percent of the total share of the S&P 500, and many feared their stock losses could bring the broader market down further. On the contrary, they've served to boost the S&P 500 into positive territory and continue to account for a greater share of the entire index. Recent earnings reports at the end of July showed continued revenue gains by most large tech companies, with Amazon blowing estimates out of the water with surprising growth across most sectors of their business.