For some time now, Alphabet, the parent company of our beloved Google, has been holding the position of the runner-up, right behind Apple Inc. in the global market. In recent events, Amazon.com has just surpassed Alphabet in acquiring the position of the second most valuable company in the world. This is the first of such occurrence. Apple Inc. has been valued at $889 billion for the past two years. As of now, Amazon’s market capitalization is $7 billion ahead of Alphabet, with $768 billion and $761 billion respectively.
This should not come as a surprise since Jeff Bezos, the founder and CEO of Amazon, has recently been proclaimed by Forbes as the wealthiest man in the world. At a net worth of $130 billion, he holds the label of the first and only centi-billionaire in the United States. Over the past 5 years, Amazon has been experiencing a positive growth in market value. At present, it has acquired a growth of 2.69 percent in its stock price as opposed to Alphabet’s 0.39 percent decrease.
In addition to three of these tech giants, Microsoft is also in the game, placing fourth. The company’s market capitalization is valued at $717 billion as of today.
Due to the comparably small gap between the top three firms, any change in positions between them will not bring about too much of a commotion. Besides, with the obvious and consistent growth that Amazon has seen recently, it is highly possible for it to surpass the rests and safely secure the position as the most valuable company across the world.
Amazon has been venturing towards different industries. They range from shopping to banking as well as healthcare. The Motley Fool has even insinuated at the company’s possible endeavor in being a “major hospital supplier”. With Bezos brisk success in recent years, it would not be surprising if they continue to achieve excellence in any possible plans. To put it briefly, a $5,000 investment in Amazon.com from 21 years ago would have gotten you a million dollars today.
On the other hand, Google is seemingly losing its grip as the firm is already anticipating a further decline, particularly in their share of the country’s advertisement industry. At the moment, Google seems to be directing its effort on the invention and production of hardware like speakers, in order to compete with the other tech giants.
For instance, Apple has found its success in various products, ranging from iPhones to Apple watches. Two years ago, Apple had introduced the AirPods, a pair of wireless earphones. This product was a huge success such that its purchasing demand far surpassed the supply. It is not easy and there are hardly any goods or services, that are not necessities, that can achieve that, especially when it is not the most affordable item. However, Apple has always been able to acquire demand for its product since brand loyalty is one of the most significant element that has led to its top spot in the global market. This is clearly evident from the series of Apple products. For instance, the series of iPhone, up till iPhone X, has consumers queueing up to purchase it. In spite of the passing of the late Steve Jobs, Apple is still coming up with each products’ successor. Take the Apple Watch for instance. From its debut in 2015, the Apple Watch has not lost its popularity within the market. From the first, to Series 2 and the latest Apple Watch Series 3. Tim Cook, the CEO of Apple has revealed that the sales of the newest batch are twice the sale of the second batch.
With Apple’s consistent growth, will Amazon be able to surpass its market value or will Apple be able to hold on to the top spot?
Featured image via flickr/ simone.brunozzi