Investors are waiting for the very first time for any of the public corporations to achieve a $1 trillion market value. $1 trillion is equal to Indonesia’s annual gross domestic product. The winner of the trillion-dollar stock market value could come from what Jim Cramer of CNBC calls the FANGs. These companies include Facebook, Amazon, Netflix and Google. Other renowned investors have put a twist to Cramer’s company alphabet and called it FAANGs to add the Apple Inc. The million dollar question is which tech company will get to the trillion dollar mark first and how soon they will get there. Tech commentators have also posed the question of what might be a hindrance or delaying factor that would frustrate the goal of any of these tech giants to reach the coveted mark.
Other think that it is a stupid idea that the trillion-dollar race has captured the imagination of the tech stock market. Anyone who has an objective opinion about any of these questions will find out the strengths and weaknesses of the shares of each of these tech corporations. The tech companies have already given an outsized competition in the past few years to most stock portfolios. Information technology stocks had a contribution of 76.5% 0f the S&P 500 return in May this year. The annual S&P 500 Global report released this statistic. The report suggests that Apple Inc. contributed to over 21% of the S&P performance.
This makes it one of the most significant contributors and the first among equals when it comes to the tech giants in the United States. The entire stocks of the FAANG group contributed to an estimated 45% of all the returns by S&P 500 in May this year. According to tech analysts and stock market specialists, some conclusions are easy to arrive at. Netflix and Facebook would not get there first. The main reason behind this is that the two companies are smaller and have a lot of work to do to achieve the trillion dollar mark. For instance, Netflix has a $150 billion market cap as compared to Apple’s $935 billion market cap. It is not rocket science to identify that it is much harder for Netflix to increase six-fold to reach the coveted mark. However, Apple needs some little bit of a marketing campaign to get the required $65 billion to reach the $1 trillion market cap target. Facebook also has a similar challenge as its stock market cap currently stands at $540 billion.
