Alphabet ($GOOG), Google’s parent company, is the fourth company to reach $1 trillion in market valuation. It hit the legendary valuation, rising 0.87% before closing on Thursday at $1,451.70 a share. This is just weeks after the Google CEO, Sundar Pichai, was promoted to CEO of Alphabet. Previously, Google co-founders Larry Page and Sergey Brin had control over the parent company, while Google was headed by Pichai.
Apple was the first company to hit the unprecedented $1 trillion market cap, which has been followed by Amazon and then Microsoft. Technically, PetroChina hit the $1 trillion market cap briefly in 2007 and Saudi Aramco became the world’s first $2 trillion company after hitting the Riyadh stock exchange.
Google is now the 4th $1 trillion company, without considering PetroChina and Saudi Aramco. Facebook is expected to be next in line as it has a current market cap if $620 billion, as of Thursday’s closing.
Alphabet is expected to report around $47 billion in revenue, according to Wall Street analysts. If it hits that revenue number, it would mean a 20 percent growth year-over-year. The fourth-quarter earnings call by the company is expected on February 3.
As The Verge says, a $1 trillion company doesn’t equal more profits. It is just the sum of the companies assets and estimated overall value, after all. Especially with publicly traded companies, the market cap doesn’t tell even a part of the story. Though these $1 trillion companies were among the most profitable companies according to Fortune, it doesn’t mean that they are the best companies in the world.
Source: The Verge
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