Market capitalization or market cap is the value of the publicly-traded company’s outstanding shares.
US companies predominately rule this prestigious trillion-dollar companies club. Apple in 2018 became the first company to join this elite trillion-dollar companies club. In 2020 – just after two years – Apple became the world’s first $2 trillion company. Microsoft is the second most valuable company after Apple as its market cap crossed $2 trillion ($2.27 trillion) as of January 2022.
Similarly, Alphabet with a $1.807 trillion market cap and Amazon with $1.611 trillion are also the elite member of trillion-dollar companies club. Similarly, at the end of this year, Tesla also joined the elite club of trillion-dollar companies. This electric vehicle manufacturing company finally hit the 13-digits market capitalization due to strong trading that lifted the share price, catapulting shares of Tesla up nearly 30% in October. Besides, Facebook is also on the verge of hitting the $1 trillion mark again.
Trillion-Dollar S&P 500 Companies & Their Stories
For a brief moment on Jan 3, 2022, this iPhone manufacturer reached a new milestone by becoming the first $3 trillion company due to a surge in its stock price. This milestone of a brief crossover to $3 trillion is due to intra-day trading where its share hit the record high of $182.88. This beloved iPhone-making company is also the first company to hit the $1 trillion and subsequently $2 trillion mark.
Microsoft is the second ever company to cross the $2 trillion market capitalization mark after Apple. In 2021, this software maker hit the $2 trillion mark soon after Windows 11 launch – a launch after 6 years of Windows 10.
The pandemic has contributed towards the boost of revenues of this software company like others S&P 500 trillion-dollar companies, as the pandemic urged people to work and study from home on their computers, thus boosting the demand for Windows — it captures 69.61 percent share of the desktop, tablet, and console OS market in December 2021. Besides, the pandemic has also driven cloud business and gaming platforms, which boosted the cloud services segment revenues of the company.
The business of this software company thrived during the pandemic as its value doubled and its stock surged to 64%. The company’s stock price appreciated to $266.69 per share.
Alphabet joined the elite club of trillion-dollar companies with a valuation of $1 trillion in 2020. The company also hit a $2 trillion valuation for a brief moment in August 2021. The company’s share price also rose to $2,987.03 per share during that period. Since the pandemic, the company’s business has flourished due to the growth in its cloud business and digital ads. Now the company sits at a market cap of $1.807 trillion, making it the third biggest S&P 500 company at the moment based on valuation.
Amazon also is part of the elite club of trillion-dollar companies. The company now has a market capitalization of $1.611 trillion and flourished like other big tech companies in S&P 500 during the pandemic. Many people during the pandemic preferred buying things online rather than going out, which accelerated the businesses of e-commerce businesses like Amazon.
Currently, Tesla with a market cap of $1.03 trillion stands tall among the trillion-dollar companies. This sustainable energy and electric vehicle company is now the sixth American company to join the prestigious trillion-dollar companies club. The accomplishments of this company make its CEO the richest person in the world, even above Jeff Bezos. It only took 12 years for this innovative company to reach the trillion-dollar group – the fastest that any company has crossed this mark since Facebook.
The Final Words
During the pandemic, the tech industry majorly thrived, thus accounting for the big tech companies in the trillion-dollar companies group. Amazon flourished during this period as more people switched to online shopping. Apple and Microsoft saw their earnings rising as work from home enhanced the need for cloud-based and IT geared services. During the pandemic, more people stuck their noses either to their computer screens or smartphones thus thriving Google’s business. Elon Musk’s social media presence and influence have also helped Tesla to finally reach the trillion-dollar companies club.