Alphabet, the parent company of Google, reaches a valuation of $ 2 trillion. The market cap of the tech giant broke through the 2 trillion dollar ceiling on Monday, closing yesterday at 2,987.03 dollars per share and now alone is worth two and a half times the whole of Piazza Affari (at the end of September all ofPiazza Affari’s MTA capitalized 717 billion euros, equal to 832 billion $ at current exchange rates) e since the beginning of the year it has added more than 800 billion in value, which is almost what the whole Piazza Affari is worth.
Alphabet joins Apple and Microsoft in the small club of $ 2,000 billion Mega Caps.
The hottest Mega Cap of the moment
Alphabet is the best performing stock this year among the five largest US tech companies with a hefty + 72% YTD on Wall Street. And the bulls are seeing the stock rise further due to its valuation and higher growth rate than most of its megacap peers. Analysts are optimistic, with all but one of those interviewed by Bloomberg who value Alphabet as a buy and the average target price of $ 3,320.
The ascent to the summit was not easy, and the risks remain. A hike in interest rates could hinder the big tech race. The Federal Reserve has just begun the process of withdrawing pandemic-era stimulus, which has fueled a record cash flow into stocks, particularly high-growth tech stocks. Google, meanwhile, is also facing an antitrust assessment. The United States Department of Justice and a group of states have sued the company for allegedly abusing its dominant position in internet search.
Apple hit the $ 2 trillion mark in April last year, while Microsoft hit $ 2 trillion in capitalization in June this year. Amazon is also approaching the fateful $ 2 trillion mark. Tesla, Elon Musk’s electric car giant, recently crossed the $ 1 trillion mark and has since reached a market cap of around $ 1.25 trillion.
Record accounts
An assist to the rally from Alphabet came from the third quarter accounts of the year, with better than expected profits and revenues. Google’s parent company posted record revenue of $ 61.9 billion in the July-September quarter, along with record profits of $ 18.9 billion. Google has confirmed itself as the golden hen of the giant, with almost doubled profits and a turnover that, on a quarterly basis, reported record growth in 14 years, benefiting from the strong recovery in advertising revenue.