Companies showing potential to enter the $1 trillion market cap club
Google’s parent company Apple, Microsoft, Amazon, and Alphabet lead the way. All four of these firms are part of the $1 trillion market cap club, which is psychologically important. To most companies, the 2019 coronavirus disease (COVID-19) pandemic constitutes one of the most disruptive occurrences they’ve ever encountered. Yet, it is considered an opportunity to get even more significant for the largest businesses on the market. While it may be a while, with no other public company currently boasting a market value of more than $690 billion, the following four stocks are the most likely to touch the next $1 trillion.
Facebook: already $690 billion in market value
First is this organization that is most likely to climb to a trillion-dollar mark. One reason that Facebook is such a rock in social media space is due to its user attraction capability. Facebook had 2.6 billion active monthly users (MAU) at the end of the first quarter, and just short of 3 billion MAUs when taking into account all of its owned sites, including Instagram and WhatsApp. Such numbers are overwhelming, and advertisers will cough up whatever it costs to hit a target market. This offers tremendous selling leverage for Facebook in almost every economic climate.
Visa: $429 billion currently in market cap
His success in the U.S. market would probably be the most significant driver in Visa’s drive to reach $1 trillion. Visa regulates more than half of the overall amount of transactions by credit card network in the U.S., which is ideal since 70 percent of the gross domestic product of this country relies on sales. When the U.S. blasts out the coronavirus crisis, Visa will be in perfect condition to take advantage of the turnaround. It is worth remembering that the pandemic COVID-19 could be a long-term victory for Visa. With cash currently being regarded as a possible source of germ-spreading, the coronavirus could intensify the push toward using more plastics.
Berkshire Hathaway: $464 billion already at market value
The two drawbacks against Berkshire Hathaway are that it is not a high growth enterprise like Facebook or Visa will be weighed down by the underperformance of bank stocks, at least in the near term. Investing in Buffett’s favorite industry is banks, and the lower interest rates and higher loan loss guarantees related to the coronavirus pandemic have walloped them. Yet that doesn’t mean Berkshire Hathaway can’t beat the trillion-dollar club against Facebook or Visa.
Tesla: $278 billion currently in market value
Beyond thinking about bubbles and FOMO (fear of missing out), Tesla has successfully developed an automotive business from the ground up to the mass production stage. This is the first new car manufacturer in more than five decades to do so. There is little doubt that EVs are the automotive industry’s future. The expectation is that the advantage of Tesla‘s first-mover mass production will enable it to retain superior brand appeal, particularly among more affluent clientele. But Tesla’s rapid growth in revenue and expansion in output coupled with a significant market correction could do the job.