Tech giants Apple, Amazon, Facebook, Microsoft and Google’s parent company Alphabet race to become the world’s first trillion-dollar firm
If technology share prices continue to rise as much as they did in 2017, investors predict 2018 will see the first firm’s stock market reach more than US$1trillion.
Currently, Apple is in the lead because of its shares increasing by 47% last year, leaving the company with a market value of US$869billion on Tuesday.
US investment magazine Barron declared that Apple made US$48billion in profit last year, roughly as much as Microsoft and JP Morgan together, making it possible for the multinational technology company to reach its US$1trillion target.
Chief investment officer at Wedgewood Partners, David Rolfe, said: “You have to go back to Rockefeller and Standard Oil to find a company so dominant in a business so large.
Breaking through the barrier
“Other companies settle for unit sales or revenues, but in many quarters, Apple collects more than 80% of gross profit across the smartphone industry,” according to Barron’s.
George Salmon, equity analyst at stockbroker Hargreaves Lansdown, added: “With Facebook, Google and Amazon attracting an ever-increasing number of eyeballs on screen, the US tech sector has more than played its part in the global stock market rally.
“However, it’s Apple, one of the older tech giants, that’s in pole position to break through the US$1trillion barrier.”
Together, the world’s top five companies (Apple, Amazon, Facebook, Microsoft and Google Alphabet) are worth more than US$3.35trillion.
Despite this, analysts are concerned that shares are overvalued and warn of a “correction”.
Written by Leah Alger