The guest commentary below was written by Jesse Felder of The Felder Report 

If That Was A Bubble, What Is This? - 7 23 2020 7 52 35 AM

Just three stocks, Apple, Amazon and Microsoft, make up more than 16% of the S&P 500 Index and over a third of the Nasdaq 100 Index.

Together they are now valued at nearly $5 trillion. That’s larger than the entire economy of Germany and roughly the size of the Japanese economy. 

What is really most astounding, though, is the aggregate valuation of these three behemoths relative to their free cash flow.

Only at the peak of the Dotcom Mania have we see anything like it – which begs the question: ‘If that was a bubble, what’s this?’

If That Was A Bubble, What Is This? - Screen Shot 2020 07 22 at 10.59.04 AM


This is a Hedgeye Guest Contributor piece written by Jesse Felder and reposted from The Felder Report blog. Felder has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report. This piece does not necessarily reflect the opinion of Hedgeye.