- Tram Ho
According to CNN, the technology giants are in a race to reach the $ 3 trillion market cap mark.
Microsoft’s total market capitalization has now surpassed Apple’s, although both are in the club of companies that exceed $2 trillion. Although CEO Satya Nadella has now become the leader of the most valuable corporation in the world, this position may not be certain in the face of fierce pursuit from rival technology firms.
Both Microsoft and Apple currently have a combined market capitalization around $2.5 trillion.
At the bottom, Google’s Alphabet company has a total market capitalization of nearly $ 2 trillion while Amazon has $ 1.7 trillion. The Tesla company of the world’s richest billionaire Elon Musk has just surpassed $ 1 trillion to join the game.
Thus, the total market capitalization of the 5 companies above has reached nearly 10 trillion USD, equivalent to nearly a quarter of the total market capitalization of all enterprises in the S&P 500.
Not stopping there, Facebook’s Meta Platforms dark horse is also accelerating when the total market capitalization has reached 930 billion USD.
According to CNN, with the strengths of all six corporations in the post-pandemic context, these businesses can completely surpass the threshold of $ 2 trillion in market capitalization. Microsoft and Apple alone can completely break the record of 3 trillion USD in the near future.
Not only that, a series of technology companies like Nvidia or Tencent of China are also moving towards the target of a market capitalization of 1 trillion USD to join the game.
At this point, many people seem surprised that a series of technology companies have grown so quickly. But consecutive profit reports and growth in this industry after the pandemic stimulated investors to buy and push prices up.
Does history repeat?
However, many experts also warn of historic crashes in the 1990s and 2000s when investors rushed and technology stocks were left empty-handed.
“Tesla’s rally is reminiscent of the Cisco example of 2000 when they triggered the market crash that same year,” warned Jones Trading chief strategy officer Mike O’Rourke.
Specifically, Cisco’s stock rose 50% in the first three months of 2000, and many world ratings agencies such as Credit Suisse have predicted the business will become the world’s first trillion dollar company by market capitalization.
Image source: Internet
Unfortunately, that prediction never materialized. At its peak, Cisco had a total market cap of $550 billion more than 20 years ago, now it’s only about $240 billion.
Another good example is Intel Corporation, which was widely predicted during its peak in the late 1990s. But in the past few years, its stock has also encountered many difficulties when it failed to grow as expected. old expectations.
CNN reported that becoming a market leader turned out to be easier than keeping it. There is no evidence that Microsoft, Apple, Amazon, Alphabet or Tesla will retain the top position in the market in the face of rapid changes in technology trends.
Many new firms will be established, many new technologies will be born, and the list of the world’s most valuable corporations in the 2040s in the future will probably be very different from today’s 2021.
Source : Genk