Big Ten Stocks Under Fire: Multiple Cracks and Cash Flow Concerns

The Big Ten stocks are under scrutiny, and for good reason. When analyzing the performance of mega-cap companies like NVDA, GOOGL, AAPL, MSFT, AMZN, AVGO, TSLA, META, LLY, and JPM, one thing stands out: nearly every single one of them trades at a significant premium to its industry on sales. For example, NVDA, MSFT, GOOGL, AVGO, and AAPL all trade between 3x to 14x their peer group's price-to-sales.

Moreover, the cash flow situation for some of these companies is concerning. Google's (GOOGL) price-to-free-cash-flow (P/FCF) has increased from 40.0 in Q3 2025 to 81.1 in Q2 2026, while Amazon's (AMZN) P/FCF is a staggering -221, indicating negative trailing free cash flow.

The multiples of these companies have already cracked under the index. In the last four reported quarters, Microsoft's (MSFT) price-to-earnings ratio fell from 36.8 to 20.8, while Meta's market cap dropped by 22.5%. On the other hand, Google's market cap increased by 46.9%.

The analysis suggests that only JPM appears relatively ordinary with a P/E of 14.0x earnings compared to an 11.1x bank median. However, its EV/EBITDA of 19.3 is not meaningful for a bank.