Alphabet rejoined the
trillion-dollar club last week. The exclusive group of companies with
trillion-dollar plus valuations now includes four names, Apple, Microsoft, Amazon.com, and Google-parent Alphabet.
Don't expect another entrant anytime soon --
a strange gap has opened up in corporate America. After the four $1
trillion stocks, there's a major drop-off. The next largest company within
the S&P 500 is Facebook at $665 billion.
And that's the only one between $500 billion and $1 trillion.
No. 6 is Berkshire
Hathaway all the way down at $434 billion. Big
tech has opened a huge lead over corporate America.
Over the weekend, Eric
Savitz attempted a
fun exercise, handicapping the race for the next trillionaire. Facebook
remains the odds-on favorite, just based on its current market value lead. But
it's not a shoo-in, Eric notes.
He has a few other potentials: Tesla, whose shares soared another 13% today; Walt
Disney, which will
eventually enjoy a post-Covid rebound. Or maybe Walt Disney-plus Netflix
-- a
hypothetical merger would give the companies a market value approaching
half a billion.
And then there's another intriguing option, Eric
notes: a spinoff from one of the existing trillion-dollar firms. Amazon's
cloud business, AWS, could approach a billion-dollar valuation on its own.
Maybe the same for Alphabet's YouTube, or Facebook's Instagram.
Eric
has a few more possibilities. You can read his full story here.
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