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The constituent companies of FAAMG, Meta (formerly Facebook (NASDAQ:FB)), Amazon (NASDAQ:AMZN), Apple, Microsoft, and Alphabet’s Google (NASDAQ:GOOGL), are expected to hedge the systematic market risk to a certain extent because it consists of some of the world’s biggest tech companies. With rapid tech integration in virtually every industry, technology is expected to be a driving force for economies worldwide.
Apple, Inc. (AAPL) is the largest company globally, with a $2.86 trillion market cap. In comparison, Microsoft Corporation (NASDAQ:MSFT) is one of the largest software companies in the world. With a $2.47 trillion market cap, it is a major competitor to AAPL. In fact, MSFT briefly overtook AAPL to become the most valuable company (in terms of market cap) in October this year. Both AAPL and MSFT are currently racing to become the world’s first three trillion-dollar company. MSFT shares have gained 53.3% over the past year, while AAPL has gained 43.2% over this period. In terms of year-to-date performance, MSFT is the clear winner with 47.6% gains vs. AAPL’s 31.4% rise. However, shares of MSFT have slumped 2.5% in price over the past month, while shares of AAPL have risen 16.2%.
