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Just a month after Sundar Pichai took the position of the Alphabet CEO, the Google parent has reached its new milestone of hitting $1 trillion in valuations. The Alphabet stock has surged 50% in one year.
Google‘s parent company Alphabet has hit a new milestone with its market hitting one trillion dollars. Google’s is the fourth global company to attain this feat just after Sundar Pichai became the CEO of Alphabet in December 2019.
On Thursday, January 16 closing, the Alphabet stock was trading at $1450 with its market cap striking $1 trillion. In the last year, Alphabet’s stock has surged nearly 50% giving handsome returns to the investors. Thus, Alphabet stock was a shining start in 2019’s stock market bull run.
Alphabet will report its fourth-quarter earnings next month on February 3rd, 2019. Wall Street analysts are expecting Alphabet to report quarterly revenue of $46.9 billion, which a 20 percent surge year-over-year.
Currently, Apple Inc. is the most valuable tech company in the world with a $1.4 trillion market cap. Apple had already achieved its trillion-dollar milestone two years back in 2018. The same year later, Apple’s immediate competitor Amazon hit this mark. In April 2019, computing giant Microsoft attained this feat and now Google has also joined the bandwagon.
Last month in December 2019, Alphabet saw a major rejig for its CEO position. Company founders Larry Page and Sergey Brin stepped down from their position of CEO making way for the most obvious contender Sundar Pichai. Although both Google founders said that they will continue being part of the company in the role of advisors.
However, these tech companies saw a recent competitor in the market after oil giant Saudi Aramco went public in December 2019. The Saudi Aramco IPO placed the company to a whopping $2 trillion valuation surpassing all other.
Top Five Technology Companies Contribute $5 Trillion to Global Economy
With the four companies hitting the trillion-dollar valuations, the next in line is Facebook. However, Facebook has a long way to go as it is currently valued at $632 billion.
The top five companies together contribute $5 trillion to the global economy as on date. these Big Tech companies have been under the latest scrutiny of the U.S. regulators. Last month, Sundar Pichai testified before the U.S. Congress on charges of the Google platform promoting political bias, as well as other privacy-related issues.
With respect to the Alphabet, the state attorneys are specifically investigating Google’s search engine and its Android operating system. However, despite all the regulatory hurdles, Google has emerged stronger with time. Despite paying billions of dollars in fine, Europe’s General Data Protection Regulation has turned in Google’s favor. With its robust data gathering capabilities, advertising has always been Google’s cash cow.
Facebook has a tough time dealing with regulators in the last two years. Firstly, its involvement in the Cambridge Analytica scandal of 2018 compromising massive user data. Secondly, its friction with the regulators for launching its native cryptocurrency Libra.
Needless to say, these tech giants have huge leverage financially to meet any headwinds, in comparison to other small and medium scale businesses.