Well, it's official: another company has outdone you apple's (Nasdaq: Apple) Market value. last week, Nvidia It became the second largest American company, after only Microsoft.
This was another blow to Apple, whose revenues remain flat Stuck in neutral. She is facing Federal antitrust lawsuit.
In fact, given Apple's difficulties and the astonishing growth of some of the tech giants, many companies will likely exceed Apple's market capitalization over the next decade. I expect the alphabet (NASDAQ:GOG) (Nasdaq: Google) And Amazon (Nasdaq: AMZN) He will be among them.
Alphabet case
As of this writing, the alphabet has Market value With a value of $2.2 trillion, trailing Apple by “only” $900 billion.
At first glance, this gap may seem insurmountable, but for Megacap, it is quite possible. For example, Nvidia closed the recent $1.8 trillion gap with Apple Less than six months.
Alphabet shares are up about 26% year to date, while Apple shares are up just 6%. This means that the former has reduced the latter's lead by about $275 billion so far this year. If this trend continues, Alphabet will overtake Apple in size within a couple of years.
Which may be Turns out there's a lot to be expected, however at the long term, I do He thinks The alphabet will catch up. First and foremost, Apple is hardware a company. It designs and sells computers, tablets, watches and smartphones. The alphabet, on the other hand, is… Programming a company. Its distinctive function is to search the Internet through Google. It makes most of its money by selling digital advertising. Most importantly, digital advertising is cheap and easy to scale; Mass production of physical electronics is not.
What's moreApple has put its signature product, the iPhone, in the hands of almost everyone who might want one. With an estimated 1.4 billion iPhones in use today, There is little There is room for it to increase its share in this key market.
Conversely, Alphabet's revenue rose 15% in the first quarter. The company relies on digital advertising revenue (from its Google search and YouTube businesses) and subscriptions he won (YouTube and Google Fiber) and data center revenues from the Google Cloud segment. These diversified revenue streams will help sustain its continued growth in the future.
Amazon
The market value of Amazon, the leader in e-commerce and cloud services, is $1.9 trillion. any It trails Apple by about $1.2 trillion.
But like Alphabet and Amazon have narrowed the gap this year. Amazon shares have risen 22% year to date. with The market value of the company increasing About $300 billion, while Apple earned about $150 billion. If Amazon continues to close the gap at this rate, it could catch up to Apple in about four years.
This is not possible. Amazon's annual revenue is nearly $600 billion – roughly the same size as Sweden's complete economy in 2022. Furthermore, the company is growing its sales by 13% year-on-year, through its expanded e-commerce business and that it Our industry-leading cloud services division, Amazon Web Services (AWS).
Moreover, the pace and scale of advances in artificial intelligence could further accelerate this growth. AWS is a major driver of Amazon's profits, and this sector is positioned to benefit from this revolution. AI-powered applications require massive computing power, the kind that can only be provided by high-performance data centers, many of which are powered by AWS.
Amazon is a tech giant that will likely continue to grow — and grow faster than Apple.
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Susan Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch He has positions at Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Nvidia. The Motley Fool has Disclosure policy.
Prediction: Two stocks will be worth more than Apple 10 years from now Originally published by The Motley Fool