- Tram Ho
Alphabet, Google’s parent company, has just reached a major milestone for its business: reaching a market capitalization of over $ 1,000 billion. It is also the fourth US company to achieve this milestone.
Apple was the first company to reach the trillion-dollar market cap in 2018. After that, both Microsoft and Amazon reached this milestone respectively. But while Apple and Microsoft continue to hold on to the value of more than $ 1,000 billion, Amazon has fallen below that threshold.
Analysts are optimistic about Alphabet’s newly appointed CEO, Sundar Pichai. In a surprise announcement in December 2019, Alphabet founder Larry Page announced his resignation from his position as CEO, and handed the position back to Mr. Pichai.
Pichai is already the CEO of Google, which holds all of the company’s core businesses, including search and advertising, YouTube and Android – all of which generate revenue and profit. Profit for the whole Alphabet. With the new appointment announcement, Mr. Pichai will now cover the entire group’s operations, including Mr. Page’s previous segments such as self-driving cars and cargo drones.
The optimism of investors also comes from the company’s growth in the cloud segment. While the business is still far behind rivals Microsoft and Amazon, it doubled its revenue from $ 1 billion to $ 2 billion between February 2018 and July 2019.
After Apple, Microsoft and Amazon, the United States has another trillion-dollar company: Google.
The company expects the same growth rate to remain the same as it continues to pour more resources into this business, including tripling its sales force and boosting Google Cloud Health. However, this business also faces obstacles in belief issues.
Google’s ability to stabilize revenue from the ad business is also one of the bright spots in the eyes of analysts. Alphabet shares rose nearly 1% after Bank of America raised its target price for the stock in January, anticipating good growth for Alphabet’s advertising business.
Currently, besides facing conflicts in corporate culture, Google and Alphabet are also facing new investigations on labor status as well as monopoly allegations.
Of the current US tech companies, with a market cap of $ 620 billion, Facebook is likely to be the next trillion-dollar company in the stock market.
Refer to CNBC
Source : Genk