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The Market Has No Bite Without the “FANG” Stocks [Chart]

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The Market Has No Bite Without the

The Market Has No Bite Without the “FANG” Stocks [Chart]

Facebook, Amazon, Netflix, and Google created over $440 in value over 2015

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

In the sixth year of the bull run, the U.S. large cap market has had its ups and downs. The S&P 500 peaked at 2134.7 in the early summer months, and promptly collapsed to 1867 points during the August flash crash.

Today, it’s back in black, but only trading just over 1% higher than it started the year.

The only reason that has made this possible is the legendary performance of four tech stocks: Facebook, Amazon, Netflix, and Google (now called “Alphabet Inc.”). Together, the “FANG” stocks have created an impressive $440 billion in market capitalization since January.

For comparisons sake: that’s over 2/3 the size of Apple’s current market cap.

The FANG stocks comprised just over 3.5% of the weight of the S&P 500 index at the beginning of the year, and now they make up 5.1%. They’ve carried the market, and without them the S&P 500 would surely be in negative territory today.

Looking at these companies individually, probably Amazon (AMZN) has been the most impressive over the course of the year. While it didn’t shoot up the 143% that Netflix (NFLX) did, Amazon had a similar performance despite being over 6x the size of Netflix. Amazon is now bigger than Facebook in terms of market cap, and achieved a gain of 116% through the year.

The only problem is that it is now the most expensive stock on the index, at a seemingly ludicrous P/E ratio of 966. The other stocks are expensive as well: Netflix and Facebook are trading at 329 and 108 times earnings respectively. Google is the lone palatable company from that perspective, trading at only 35 times earnings.

This raises the question of how long the FANG stocks can carry the load, and if their work is done.

If so, who will step up to the plate?

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What is the Median Pay of Magnificent Seven Companies?

The Magnificent Seven companies are fueling stock market gains. In this graphic, we show the median pay of each company in 2023.

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This circle graphic shows the median pay of employees at the Magnificent Seven companies.

What is the Median Pay of Magnificent Seven Companies?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The Magnificent Seven are lifting the stock market to new highs, led by Nvidia, Microsoft, Apple, and Alphabet in particular.

In May alone, these tech giants added $1.4 trillion in market capitalization to the S&P 500—surpassing the combined gains of 296 other stocks during the same period. Notably, Nvidia contributed to more than half of this rise. As tech stocks boom, many are offering robust salaries with substantial stock option plans.

This graphic shows the median pay of the Magnificent Seven companies in 2023, based on analysis from The Wall Street Journal and MyLogIQ.

The Highest Paying Companies in the Magnificent Seven

Below, we show the median employee pay of the Magnificent Seven companies in 2023:

CompanyMedian Employee Pay
2023
CEO Total Pay
2023
Meta$379,050$24.4M
Alphabet$315,531$8.8M
Nvidia$266,939$34.2M
Microsoft$193,770$48.5M
Apple$94,118$63.2M
Tesla$45,811$0M
Amazon$36,274$1.4M

Data for Microsoft is from SEC filings. Total CEO pay includes equity awards and cash pay.

Meta ranks as the highest overall, with a median pay of $379,050, which is more than six times the national median salary.

Not only is it the leading company in the Magnificent Seven, it has one of the highest median pay across S&P 500 companies. Between 2022 and 2023, employee pay increased 28%, following four rounds of layoffs that slashed thousands of employees in its “year of efficiency”.

Following Meta is Google’s parent company, Alphabet, with a median pay of $315,531. The company operates a hybrid work policy, requiring employees to be in the office about three days a week. This mirrors a trend seen across Amazon and Salesforce to encourage in-person collaboration.

At Nvidia, employees received a median pay of $266,939, fueled by its soaring share price. Last year, over $300 million in value was delivered to its staff under its employee stock purchase plan. Along with a competitive pay package, the company offers an unlimited vacation policy along with 22-weeks of paid parental leave.

Falling near the bottom of the pack is Tesla, where the median salary for employees is $45,811. The automotive sector is notorious for steep wage gaps between CEOs and workers, with CEOs often earning 300 times more than the median employee.

In 2023, Tesla CEO Elon Musk earned no compensation, and is instead paid through incentive-based stock options. Recently, a judge invalidated a staggering $56 billion pay package for the executive, deeming it unfair to the company’s shareholders. This pay package was awarded in 2018, with stipulations that Tesla meet certain performance requirements over a 10-year timeframe.

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