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After Apple, who will be next worth USD 1,000 billion?

The stock gained another 0.29 percent Friday for a stock market value of USD 1.005 billion.


Devdiscourse News Desk Last Updated at 07 Aug 2018, 22:08 IST
After Apple, who will be next worth USD 1,000 billion?
  • Alphabet, the parent company of Google, has gained 32 percent over the past year and nearly 18 percent in 2018. (Image Credit: Twitter)

Amazon, Microsoft, and Alphabet are in a row to become the second-largest publicly traded US company to reach USD 1,000 billion worth of stock after Apple.

Buoyed by the enthusiasm surrounding the commercial success of its iPhone X launched last year and incidentally by share buybacks, the title Apple has gained 34 percent over the past 12 months to reach the historic threshold of USD 1 trillion (864 billion euros), two days after the publication of quarterly results better than expected.

The stock gained another 0.29 percent Friday for a stock market value of USD 1.005 billion.

Apple's 12-month performance is well ahead of the S & P-500's 14 percent, but it is off par with Amazon's 85 percent surges, with quarterly earnings growth.

The e-commerce giant is currently the second largest US company with a capitalization of 889 billion dollars, ahead of Alphabet and Microsoft worth 856 and 830 billion dollars respectively.

Alphabet, the parent company of Google, has gained 32 percent over the past year and nearly 18 percent in 2018.

With Facebook, these five groups have a weight of 15 percent in the S & P-500 (4 percent for Apple, 3 percent for Amazon, Alphabet and Microsoft and 2 percent for Facebook).

Dan Morgan, managing director at Synovus Trust, says he has Amazon in the portfolio mainly because of his dominance in the segment of cloud computing, where its Amazon Web Services division (AWS) is highly profitable.

"Of the three groups, I would say that Amazon will be the next to reach the 1,000 billion," he says.

Analysts' average price targets put Apple's stock market value at USD 1.05 billion and Amazon's stock at USD 1.020 billion, compared to USD 970 billion for Alphabet and $ 953 billion for Microsoft, according to Thomson Reuters data.

Past rises do not foreshadow future performance, but the charts show that Amazon's stock market value will overtake Apple's value at the end of the year if both stocks maintain their trajectory over the last 12 months.

In this same hypothesis, Alphabet and Microsoft would reach the USD 1,000 billion capitalizations in 2019.

(With inputs from Reuters)


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