Google Joins The Trillion-Dollar Club: Who's Next?

Daniel Laboe

Alphabet, aka Google (GOOGL), just became the 3rd publicly traded US company to reach $1 trillion market capitalization. Apple (AAPL) was the first to hit it in August of 2018, then Microsoft (MSFT) in April of 2019, and today its Google. Who will be next to join the Trillion-Dollar Club (TDC)?

Amazon (AMZN)

There are a few companies that fit the pitch, but based on current valuations, Amazon (AMZN) looks to be the closest to hitting the $1 trillion valuation. The stock has traded right up to this mark but has yet to pass it. AMZN traded sideways through much of 2019 with 2 EPS misses not helping the share price.

Amazon controls the growing ecommerce market as well as the cloud computing space. Both spaces have a massive growth outlook, and Amazon stands to gain the most. December quarter earnings are coming up on January 30th, and this may be just the catalyst it needs. It will only take another 7.5% boost for AMZN to join its cohorts in the Trillion-Dollar Club.

Amazon.com, Inc. Market Cap

Amazon.com, Inc. Market Cap

Amazon.com, Inc. market-cap | Amazon.com, Inc. Quote

Facebook (FB) and Alibaba (BABA) are next on the list of potential TDC members.

Facebook (FB)

Facebook is the largest social media company in the world. 2.2 billion people around the globe use one of Facebook’s family of services daily. At the same time, 2.8 billion utilize one of these at least once a month, whether it be Instagram, WhatsApp, Messenger, or Facebook. That means that 36% of the world population uses one of FB’s platforms monthly, and more than 28% use one of these daily.

It is safe to say that Facebook has a firm grip on the social media market. The company will continue expanding its businesses to digitalizing economies like Southeast Asia and Africa, as well as further monetize its current users. Facebook is also at the forefront of virtual reality (VR) with its Oculus acquisition. This company will continue broadening its reach with investments in its core competencies and strategic acquisitions. It will not be long before FB hits $1 trillion.

Facebook, Inc. Market Cap

Facebook, Inc. Market Cap

Facebook, Inc. market-cap | Facebook, Inc. Quote

Alibaba (BABA)

The Amazon of the East has been largerly overlooked by investors because of the US-China trade conflict's implications. Alibaba controls the ecommerce market as well as the cloud computing space in the world’s second-largest economy (by GDP).

Alibaba, when compared to Amazon, is trading at a substantial discount. The firm not only sports wider margins and a larger growth outlook, but it is actually more profitable than Amazon. BABA is well on its way to the Trillion-Dollar Club.

Alibaba Group Holding Limited Market Cap

Alibaba Group Holding Limited Market Cap

Alibaba Group Holding Limited market-cap | Alibaba Group Holding Limited Quote

Take Away

$1 trillion is an incomprehensible amount of money. There is less than $1.5 trillion circulating in the US today, and if you want to visualize this amount of cash, think of a Walmart (WMT) filled completely with double-stacked pallets of $100 bills. The companies that make it to this size are too big to fail or get acquired. These tech giants will continue to consume smaller firms and expand their product offerings until the SEC or FTC breaks them up.

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