Alphabet Inc. the company that owns Google has joined the trillion-dollar club becoming the fourth U.S company to make the list.
The firm crossed the trillion-dollar mark in the last few minutes of trading on Thursday January 16, 2020 with shares reaching $1,450.16 on the New York Stock Exchange, the highest share price for the company to date.
Alphabet joined Apple, Amazon, and Microsoft in the elite club, showing substantial growth considering their first sales of equity shares started at $85 each, with the companies worth valued at $23 billion in 2004 when it traded as Google. The valuation comes after the company has been in a longterm competition of “Faang-stocks”. The market term for the top-performing and most favored technology stocks.
Google’s share price has steadily increased through the launch of a number of products including its own operating system for smartphones, Android, and products like Google Assist and Google Home. Money made from advertising across the internet and on YouTube has also influenced the stock price.
CIO of the private investment firm J Stern & Co, Christopher Rossbach, sees an even brighter future for the company explaining, “As Alphabet joins Apple, Microsoft and (from time to time) Amazon among tech companies that have reached this level, it marks just the start for the company. It still has significant further room to grow, both in its core online advertising business as it innovates in advertising monetization and formats and in its cloud computing business.”
“It is also disrupting new multitrillion-dollar markets, for example, healthcare, with this technology. Its sizeable investments give Alphabet a sustainable competitive advantage as it applies this technology across its business.”
“Alphabet can be a $2tn company in the near future and is a compelling opportunity for long-term investors.”
The ranking on the trillion-dollar list currently stands with Apple coming in first at $1.4 trillion, second is Microsoft with $1.2 trillion, and Alphabet is third. Microsoft which makes it onto the list and then often slips just below it is currently valued at $931 billion.