Published - September 26, 2022 @ 12:42 PM (EET)

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In a year that has seen high-flying tech stocks with soaring valuations battered, Apple's (NASDAQ:AAPL) share of the mega-cap market appears unchallenged by Tesla's (NASDAQ:TSLA) stock, according to a report compiled by Bloomberg.

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Of the five biggest US companies by market value, Tesla’s shares are by far the most expensive, yet they’re the only ones whose performance comes close to Apple’s, a rarity for investors in the sector.

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So far this year, Tesla is down 22%, while Apple has fallen 15%. By contrast, Microsoft Corp., Alphabet Inc., and Amazon.com Inc. have all declined 29% or more.

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Apple and Tesla are similar in that they have astronomical market values -- $2.4 trillion and $862 billion, respectively -- which means they benefit from flows into funds that track major indexes.

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Apple’s significant cash flows and commitment to paying shareholders via dividends and buybacks have made it a favorite for investors seeking to play defense amid rising inflation, which consumers worry, will push the US economy into recession.

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Meanwhile, some of Tesla's volatility this year is related to CEO Elon Musk, who is trying to get out of his deal to buy Twitter Inc (NYSE:TWTR).

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According to Ziegler Capital's Angell, Apple and Tesla seem particularly attractive right now, being somewhat shielded from economic cycles thanks to a loyal customer base, especially in a market where investors are avoiding risk.

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“The reason they’ve outperformed is the reason we want to continue to own them,” he said.

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Elsewhere, the pain for investors in Facebook owner Meta Platforms (NASDAQ:META) is getting worse, with the social-media company erasing all of the gains made during the pandemic. Meta shares are down 58% this year, heading for only their second annual decline in its time as a public company, the other being a 26% drop in 2018.

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