Making the 4th US company to hit a market cap of $1 trillion, Alphabet won’t be the end of the near-term gains in the stock market. And recent trading history in shares of Google’s parent company suggests that short-term gains will not stop.
Google’s parent company shares have jumped over 10% in value in the past month alone. Alphabet has had similar one-month moves on seven other occasions in the past few months. Predictions are that the trends will continue, gaining another 2% in the next month.
While the company had a couple of bumpy years, including a 20,000-person Google Walkout employee protest and allegations of sexual misconduct, Alphabet kept their proper numbers. After co-founders Larry Page and Sergey Brin relinquished control of the company, Sundar Pichai (Google’s current CEO) took over as CEO of Alphabet in December.
What about world-wide?
The first company to hit a $1 trillion market cap was PetroChina in 2007. Saudi Aramco, however, became the first $2 trillion company in 2019.
In the US, Apple was the first to hit a $1 trillion cap is 2018, followed by Amazon and Microsoft. A trillion-dollar value, however, doesn’t guarantee the overall economic health of a company. Investors, therefore, shouldn’t make hasty decisions, and they usually don’t.
Nevertheless, according to Fortune, trillion-dollar companies were still among the most profitable companies in the world in 2019. Saudi Aramco tops this list; Apple takes second place, and Alphabet – the 7th.
Facebook is the next company expected to hit the $1 trillion market cap, which is currently around the $650 billion mark.
Where does the Alphabet’s revenue come from?
While Wall Street is bullish because of the company’s cloud business, ads are the lion’s share of Alphabet revenue. However, the company is a generation more than $8 billion from the cloud, although it’s still far behind the leader Amazon and 2nd place Microsoft.