Big tech is reaching stratospheric heights in Q3. Here, we present 5 of the biggest players, 4 of which have surpassed a trillion dollar market cap.
Aug. 27, 2020
Long gone are the tech companies from the dot-com boom of the 90s; companies like AltaVista, Netscape, and Pets.com. In their place we have behemoths like Microsoft, Google , and Facebook, not to mention the $2 trillion valued Apple and the closely trailing Amazon. We present you with the most valuable tech companies today and what they have in the works, in order of market cap.
1. Apple
Apple was the first company to hit a trillion-dollar valuation in 2018 and then $2 trillion on August 19 this year. The pandemic shuttered Apple stores around the world for a few months but that’s okay since online sales soared as people were forced to work and play from home. iPad and Mac revenues were up 31% and 18%, respectively, from Q3 2019 and revenues across every segment beat analysts’ consensus by 14%. Apple’s recent hiring of cloud engineers has investors speculating that Apple might be entering the cloud arena, a highly profitable sector which has boosted revenues for the likes of Amazon, Microsoft, and Google.
2. Amazon
Second in the list is Jeff Bezos’ seller-of-everything and the number one cloud provider in the world. I’d like to point out one recent development: Amazon’s meetings with Simon Properties, the biggest mall operator in the U.S., to perhaps use shuttered JCPenney and Sears stores as fulfillment centers, further bolstering its brick-and-mortar footprint along with Whole Foods. A more ambitious plan would be to completely modernize the mall shopping experience; people can shop at futuristic stores with little hassle in the way of payment or returns (which can all be processed at one place for multiple outlets). With e-commerce comprising only 11.1% of all retail in 2019, it’s little wonder that Amazon continues to invest in traditional shopping.
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3. Microsoft
Another trillion-dollar company, Microsoft beat Wall Street’s expectations in its fiscal fourth-quarter report by posting profits of $1.46 per share versus the expected $1.34 and revenue of $38 billion versus $36.5 billion. This was due to the pandemic which helped its cloud business to exceed $50 billion in revenue for the year. This holiday season, Microsoft is releasing the highly anticipated XBOX Series X video game console which will no doubt be a blockbuster, boosting its revenue even further.
4. Google
Google leads the world’s search-engine market share at a whopping 86.02%. The company’s cloud sector, Google Cloud Platform, was up 53% year over year for fiscal 2019 at $8.92 billion, which was a significantly higher growth than the overall cloud market experienced at roughly 16%; additionally, it had an annual run rate of $10 billion in Q4 2019 and $11 billion in Q1 2020. Google Meet got a boost when Zoom was experiencing security issues earlier in the year. The third-place cloud provider is investing over $3 billion to expand services in Europe and had a forecast of $38 billion in cloud revenue by 2025; that projection was made before the pandemic.
5. Facebook
Finally, we come to Mark Zuckerberg’s Facebook, which also got a boost from the pandemic with users jumping 10% year-over-year to 2.6 billion. However, it also took a hit in revenue from advertisers as a result of COVID-19, not to mention from advertisers boycotting the company for its stance on hate-speech. The company is still solid, however, having grown its revenue over 3400% in the last decade, and expected to reach $180 billion by 2025. Zuckerberg wants to expand internet accessibility to every human on earth and is working towards that goal with Terragraph, a wireless tech that will provide users with city-wide 500 megabit-speed Wi-Fi at a lower cost than fiber. With pilot programs in Malaysia, Hungary, and Canton, Ohio, the tech had its debut in earnest in San Juan, Puerto Rico on August 5, after a six-month trial run.
Company | Mkt Cap (In T As of Aug 26) | Decade % Revenue Growth |
Apple | $2.16 | 298 |
Amazon | $1.71 | 720 |
Microsoft | $1.68 | 104 |
$1.11 | 452 | |
$0.84 | 3481 |
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.