Amazon.com (AMZN) is the stock that continues to amaze. On Wednesday, it traded up another 1% in early trading, marking its eighth straight day of gains. In just that eight trading day span, the company has seen its market cap increase by over $30 billion which is more than the entire market cap of Target (TGT)! The S&P 500 Retail Industry Group currently consists of 32 companies across a wide variety of the retail landscape, but interestingly enough, Wal-Mart (WMT) isn’t one of them as it is considered part of the Food & Staples Retail Industry Group. Not including the Food and Staples retailers (where AMZN is also growing an increasingly large foothold), AMZN continues to steadily increase its size within the Retail group.
With a market cap of over $400 billion, AMZN is by far the largest component in the S&P 500 Retailing industry Group, accounting for more than a third of the group’s market cap. The chart below shows the market cap of each company in the S&P 500 Retailing Industry Group. With that, we have also included a line that shows the cumulative market cap of companies in the group from left to right. So, at a market cap of $434 billion, AMZN accounts for 36% of the group’s market cap. The next largest company in the group is Home Depot (HD), with a market cap of $177 billion. Together, AMZN and HD account for more than half of the group’s market cap. Then, if you add in Priceline (PCLN) and Lowe’s (LOW), you’re up to just under two-thirds of the entire group’s market cap! Talk about top heavy! Even in the broader S&P 1500, which includes more than 90 stocks, AMZN still accounts for one-third of the group. As AMZN and the largest stocks in the Retail group have grown, the remaining stocks are becoming increasingly irrelevant.