Market capitalization is the total dollar market value of a company’s outstanding stocks. Traditionally, we can calculate the capitalization by multiplying the number of shares by their price. Market capitalization can be an important tool for risk assessment and can tell traders how safe a company is. Being aware of market cap as a measure can let you strengthen your portfolio and decrease risk exposure.
Today, we’ll present the leaders in the category, the companies with the largest market cap in the world.
Apple (AAPL) is a widely known tech company, most famous for their iPhone devices. However, they have a range of products, including Mac computer devices, TVs, Airpods, and so on. Apple is known as an innovator in the business and has brought about new industry standards numerous times.
It’s listed on Nasdaq with a market cap of $2.9 trillion. Its value doesn’t only lie in its speculative power, as it shows fantastic results business-wise. In the past year, its income was $94.7 billion, revenue $365.8 billion, and total return 44.2%,
Microsoft (MSFT) is another well-known tech firm, producing the most widely-used PC operating system. It also provides additional tools for that system, such as the office packet. It’s also a leader in cloud computing with Azure. And while many may not know, it also owns LinkedIn.
The company is also a part of Nasdaq, boasting a market cap of $2.6 trillion. Microsoft’s yearly revenue is $176.3 billion, putting its income at $67.9 billion. The company’s one-year trailing total return is 58.6%.
Alphabet Inc. (GOOGL) continues our trend of massive tech companies topping the list. Naturally, the company is most well-known for the Google search engine but has branched out far and wide since then. Gmail, Youtube, Google Maps, the Play Store, Teams, and many other products we use daily are Alphabet’s. It also has numerous physical products, such as the Fitbit watch and Google Nest.
Alphabet is our third company that’s on Nasdaq with a market cap of $2 trillion. As far as revenue and net income go, Alphabet actually beats our previous entry. Alphabet’s yearly revenue is $239.2 billion, and its net income is $70.6 billion. The total return for the past year is 66.1%. The lower market capitalization may be due to public sentiment and privacy concerns regarding Alphabet.
Saudi Arabian Oil Co.
Saudi Arabian Oil Co. (2222.SR) is the first company on our list that doesn’t deal with tech. Its actual area of operations is fairly apparent from the name. It deals with both the upstream and downstream dealings of the oil business. It also has a subsidiary that deals with aromatics and synthetic rubber.
Saudi Arabian Oil Co. is listed on a Saudi exchange by the name of Tadawul with a market cap just slightly below Alphabets at $1.9 trillion. Its revenue sits at $350.8 billion and income at $92.7 billion. The return, however, is by far the smallest so far at 1.5%.
Amazon.com Inc. (AMZN) returns us to big US-based tech companies. It’s the most famous eCommerce retailer in the world and the biggest cloud computing service provider. Besides eCommerce, the company has branched out in numerous other areas, such as entertainment with Twitch and Amazon Prime Video. It also has a range of well-known physical products, such as the Kindle e-reader and Alexa home assistant.
Amazon is also on Nasdaq with a market cap of $1.7 trillion. Its revenue actually beats all previous entries, sitting at $458.0 billion. However, likely due to high operational costs, the income is the lowest, at $26.3 billion. The total return for the past year is 12.2%.