Aside: why are Alphabet and Meta bucketed into the Communications sector rather than the IT one? Meta kinda makes sense, but Alphabet much less so.

Are there any other notable IT companies that aren't actually part of the S&P500 IT sector?

Edit: Apparently this happened in 2018 and is known as the de-FAANGing of the IT sector. I.e. FAANG used to all be lumped in a single sector. ^SPX tried to redistribute to spread the companies across different sectors. AMZN is another notable company now outside of IT sector. https://en.wikipedia.org/wiki/Communication_services_sector_...

They're both advertising companies. IT is just the medium by which they do said advertising.

It does kind of make sense for alphabet and meta considering their primary revenue driver is advertising and communication platforms respectively. That would put them into Media & Communications. IT is how they get to that. For amazon it's a bit more complicated, but still it's their retail that drives their revenue where AWS accounts for like ~20% of revenue.. however in amazon's case it's also AWS that also drives more than half of its profit.

It would be interesting (but perhaps useless) to try to weigh the companies by the percentage associated with whatever index or group you're trying to build - e.g, if you're building an IT Index, and AMZN makes 50% of revenues (or profit or however you'd value "that side" of the business) - you'd deweight them by half.

So if by market cap they'd be 8% of the index, you'd have them at 4%, because half of what they do isn't IT but something else (logistics, retail).

good point, i think it'd be valuable to bring in more of these companies to this chart. with it narrowly scoped here it's perhaps (likely) not telling the full story. i would imagine theres plenty of ballooned valuations still because of AI