Facebook seems to be the next to join the $1 trillion market cap club. Visa, Tesla, and Berkshire Hathaway are also strong contenders in the race.
Despite the persisting coronavirus pandemic affecting most companies’ growth, some companies are close to joining the $1 trillion market cap club. Already, Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)are members of the club. Each of these companies boasts of market capitalizations gradually rising towards $1 trillion.
Currently, Facebook, Tesla, Visa, and Berkshire Hathaway seem to be the top four close to attaining the $1 trillion status.
Facebook Heading to $1 Trillion Market Cap
Facebook Inc (NASDAQ: FB) is the most likely to join the $1 trillion market cap club. With billions of users worldwide, the online social media and networking service has its hands in several pies. The company, which also owns other social media platforms like Instagram, and the popular chat app WhatsApp is a giant player in the social media sphere. Facebook also owns Oculus VR, a company that specializes in virtual reality hardware and software products.
As at the fourth quarter in 2019, the Facebook network had over 2.5 billion active users, with over 50% of this in daily visitors. Presently, Facebook’s market cap is at $689.31 billion.
A reasonable percentage of the company’s revenue is generated from Facebook and Instagram ads only. The company is also yet to monetize Facebook Messenger and WhatsApp, a move that could benefit its market cap. All of Facebook Inc.’s successes puts it at the forefront of the race to $1 million in market cap.
Tesla Market Cap
Tesla Inc (NASDAQ: TSLA) presently has a market capitalization of $304.74 billion. In less than a month, the Electric Vehicle (EV) company increased its valuation by almost a hundred billion dollars. Recently, Tesla’s stock has been growing as investors are still buying its shares, currently worth over $1,500. Just six months ago, Tesla shares were trading at $500. At the moment, the EV company is at a premarket price of $1,584.99. The recent rapid growth and production expansion may serve as a channel to guide the company into the $1 trillion club.
Visa Market Cap
Visa Inc (NYSE: V) is an American multinational financial corporation that provides easy electronic fund transfers globally. The financial corporation delivers its services through the Visa-branded debit cards, credit cards, and prepaid cards. Visa is presently one of the ten largest public companies in the U.S. by market cap. In the country, the company controls a large number in the volume of credit card network purchases.
Currently, Visa’s market cap sits at $418.31. Although the coronavirus pandemic is disadvantageous to most companies, payment firms like Visa are likely to benefit. This is because many now prefer virtual payments instead of cash, which is more likely to spread germs.
Berkshire Hathaway May Hit $1 Trillion Cap
Another company in the race to the $1 trillion club is Berkshire Hathaway Inc (NYSE: BRK.A). The American multinational conglomerate has various businesses. The diverse range of businesses include confectionaries, railroads, jewelry sales, home furnishings, and many others. Today, the Warren Buffett-led company now has a market cap of $467.08 billion.
Earlier this month, American energy and power company Dominion Energy announced a $9.7 billion deal with Hathaway. Dominion Energy said it has reached an agreement to sell “all of its Gas Transmission & Storage segment assets” to Berkshire Hathaway. This deal could play a major role in pushing Berkshire up to $1 trillion.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
