When it comes to stock markets, everyone wants to know who the top dogs are and who is making the most money. Who is the highest stock market company in the world? In terms of valuation, the first and second most valuable companies are Amazon and Microsoft respectively. These two giants of the tech world are not the only players in high stock market company arenas. Other high-valued companies such as Apple, Alphabet (parent company of Google), Facebook and Tencent (based in China).
Amazon is the highest in terms of market capitalization, this measures the overall value of the company. This includes the total number of company shares multiplied by the market price of each individual share. Amazon boasts a market value of $1.62 trillion dollars. Taking the number 2 spot you will find Microsoft with a market cap just under a trillion dollars at $980 billion.
In terms of stock price growth, Amazon had an impressive year in 2020. Shares rose by an incredible 86% over the course of the year. That increase was supplemented by a strong third quarter performance in 2020 where Amazon reported a record-setting $96.15 billion in sales. This was partly driven by the coronavirus pandemic and the surge in online shopping it caused.
Microsoft followed in Amazon’s footsteps with a similarly impressive 2020 performance. Despite fears of economic slowdown in the face of the pandemic, Microsoft’s share price managed to climb by 31.3% in 2020. Much of their success was riding on the growth of their cloud computing business, Azure. Azure saw a 50% increase in growth to bring in $15.2 billion in the third quarter of 2020.
Apple did not fall far behind its competitors with a much respectably 6.6% increase in its share price in 2020. Apple reported a quarterly revenue of $64 Billion USD, down from the previous $84 billion in the same quarter of 2019. Despite headwinds from the pandemic, Apple still managed to remain near the top with its market cap reaching a value of $2.2 Trillion.
Alphabet Stock Price Growth
Alphabet, the parent company of Google, had a surprisingly good 2020 performance. In the second quarter of 2020, Alphabet reported revenue of $38.3 billion, up 11.7% compared to the same period of 2019. The company’s share price increased by 30% over 2020. This gave Alphabet a market cap of $1.26 trillion.
Facebook’s Performance
Facebook followed a similar path to 2020 with a market cap of approximately $753 billion at the end of the year. The social media giant reported revenue of $21.5 Billion in the second quarter of 2020, an 11.2% increase from the same period the previous year. Their stock price saw a modest rise of 20.9% over the course of the year.
Tencent Stock Price Growth
Tencent, the Chinese tech giant, was one of the few giants to experience a downturn in 2020. The Chinese economy was significantly impacted by the coronavirus pandemic, which caused a decrease in their share price. Despite this, Tencent still reported a market cap of $687 Billion at the end of 2020.
Primary Factors Influencing Stock Market Companies
There are a wide range of factors that impact the performance of each of these companies in the stock market. Any change in the political, economic or technological climate can have a significant effect. There are also industry-specific regulations and societal trends that will play an important part. While almost all of these companies have seen significant growth over 2020, it is important to recognize the volatile nature of the stock market and that all markets change over time.
Investment Strategies Depend On Stock Market Companies
Investors should consider the opportunities available to them carefully. Diversification is an important part of minimizing risk when it comes to the stock market. Investing in the highest stock market companies may not always be the most profitable strategy. Different investors have different levels of risk-tolerance, so a mixed portfolio often works best.
Tax Implications Of Investing In Stock Market Companies
It is also important to consider the tax implications of investing in the highest stock market companies. Different countries have different rules regarding capital gains tax, dividend tax and stamp duty. Knowing the regulations and rules of the market can help investors to maximize the return on their investment.
Benefits Of Investing In High Stock Market Companies
Investment in the highest stock market companies can often provide investors with benefits that they wouldn’t find anywhere else. These companies are often associated with stability and reliability. Most of them are also likely to pay regular dividends to shareholders which can be a great way to generate a steady income from investments.
Criticisms Of Investing In The Highest Stock Market Companies
Critics of investing in the highest stock market companies point to the fact that their development has often come at the expense of society. Amazon, for example, has been criticized for creating a monopoly of the e-commerce industry. As the largest companies continue to grow, the chances for smaller businesses to compete decreases.
