What Amazon tells us about the market – The Wall Street Journal

DUBLIN – One of the things I heard quite a lot last year was that global equity markets are weak because they rely too much on a handful of large companies. Most of the S&P 500's growth over the last few years has been driven by just four or five companies (the FAANGs – Facebook, Apple, Amazon, Alphabet, and to an extent, Netflix). The picture is similar in South Africa, where the performance of just one company – Naspers – dominates the market to an extraordinary degree. But in this article, The Wall Street Journal argues that an in-depth look at Amazon reveals a more-complex reality. While big companies get the lion's share of attention, they are not quite as dominant as you might think. This is good news for those of us who believe that diversification matters.  – Felicity Duncan

What Amazon's Rise to No. 1 Says About the Stock Market

ByJason Zweig

(The Wall Street Journal) On Jan. 7, Amazon.com Inc. became the world's largest company by market capitalization. Its rise might make you think today's biggest technology companies are turning into unstoppable juggernauts of growth, or that turnover at the top is only accelerating.

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