What will the first US $1 trillion company be?

 

Which company will be the first to reach a market capitalization of $1 trillion?

This was the question posed to several market experts as they entered 2018. Mati Greenspan, a senior market analyst at eToro brokerage, was among the first to respond, mentioning the usual suspects with high market caps: Apple, Google, Microsoft, Facebook, and Amazon. He also noted Disney’s expansion efforts and diversification into new industries. Greenspan added a caveat, suggesting that achieving such valuations relies on the current bullish trend continuing by another 30 to 40%. A significant market correction could delay these milestones significantly. However, some market observers believed the next major market move might be a correction rather than further growth. A survey by Managing Partners Group found that 71% of institutional investors anticipated a global equity market correction of over 10% within 18 months.

Returning to the original question, Eurof Uppington, manager of Quaero Capital’s Disruptive Innovation Strategy, favored Amazon as a potential trillion-dollar company. He believed that while Alphabet and Apple had higher market caps, both Facebook and Amazon, with around $520 billion market caps, had faster revenue growth and room for margin expansion. Uppington also noted Apple’s recent efforts, such as the iPhone X launch, and suggested it might need to pause. Uppington emphasized that Amazon was still in the early stages of many initiatives, like Whole Foods, Alexa, and more, giving it a longer growth runway. He considered Facebook a contender but cited concerns about its older demographics. While many were looking at American giants like Apple, Amazon, and Alphabet, Jeremy Leach, CEO of Managing Partners Group, offered a different perspective. He pointed out that China might have been a contender, but concerns about an overheating economy made it less likely. Instead, he believed American corporations had the capacity for further growth and acquisitions, potentially reaching the $1 trillion milestone. Leach listed Apple, Amazon, Alphabet, Microsoft, Cisco, and Oracle as companies with substantial cash reserves and potential for expansion or acquisitions. He noted that Apple was already close to the trillion-dollar mark and could get there by merely maintaining its growth. In the end, the race to a $1 trillion market capitalization remained a topic of debate, with different experts favoring various companies based on their unique strengths and growth prospects.

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