Even mega caps have volatility

Last night, Microsoft (MSFT:US) shares fell 4%, which means its market cap declined by US$92 billion.

In Australian Dollars that equals A$143 billion or nearly the total market capitalisation of the Commonwealth Bank of Australia.

But it’s OK, for in the previous day, its market cap rose by US$75 billion.

Even more impressively, 92 million shares traded over the past 2 days.

While that’s only 1.3% of their outstanding shares, it equates to US$31 billion worth of stock changing hands (or A$49 billion).

For some reference, the daily average value of the shares traded on the whole of the Australian (ASX) stockmarket is approximately A$5 billion (or US$3.2 billion).

Furthermore, Alphabet (Google) (GOOGL:US) has seen it’s stock price fall 12% over the past 2 days, meaning its market cap declined by US$211 billion or A$332 billion.

(The combined total market cap of Rio Tinto and BHP is ~ A$390 billion).

Over those days, 141.4 million shares traded or US$17.7 billion worth of stock.

And that’s just the Class A shares.

October 27, 2023

by Rob Zdravevski

rob@karriasset.com.au