Alphabet, Google’s parent company, rose 0.87 percent to a record high of $1,451.7, surpassing $1 trillion for the first time, becoming the fourth U.S. tech giant after Apple, Amazon and Microsoft to surpass $1 trillion.
Alphabet is the newest member of a “trillion-dollar” club, and only two U.S. companies have crossed that threshold: Apple and Microsoft, with a market capitalisation of about $1.38 trillion and Microsoft, with a market capitalisation of $1.27 trillion. Globally, Saudi Aramco topped the list. The company, which went public last month, is now worth about $1.8 trillion.
Apple became the first company to reach a trillion-dollar market value milestone in 2018, followed by Microsoft and Amazon. Apple and Microsoft still have market capitalisations of more than $1 trillion, while Amazon’s is below that level.
Amazon was close to that level last year, but the e-commerce company is now valued at $931.1bn, up more than 7 per cent to achieve a market capitalisation of more than $1, 000bn.
Alphabet, Apple, Microsoft and Amazon are by far the biggest companies on Wall Street, accounting for more than 15 percent of the weighting of the Standard and Poor’s 500 index.
Facebook Inc. The fifth-largest U.S. company by market capitalisation is currently valued at $632.9 billion. The biggest company outside the tech and Internet industries is Berkshire Hathaway Inc., owned by Warren Buffett. ), with a market capitalisation of about $559 billion, ranks sixth.
Alphabet’s share price, which is up about 40 percent from its June low, was boosted by optimism about its 2020 outlook, particularly in advertising revenue. Alphabet will report fourth-quarter results on February 3.
In a recent review, Evercore ISI raised its share price target to $1,600 from $1,350 and wrote that it expected the company to continue to “strengthen its dominance in search and video advertising.” Earlier this week, Deutsche Bank raised its target price to a high of $1,735, saying the stock was “trading too cheap”.