Alphabet crests US$1 trillion market cap thanks to Google
Alphabet has hit a market cap of US$1 trillion for the first time. It now joins only Apple, Amazon and Microsoft as one of only four US companies to have achieved the landmark. Of course, powering its valuation over the threshold is the performance of Google, the key portfolio in Alphabets wider range of bets across various initiatives all of which utilize technology at their core.
A significant driver of Google’s success, which has helped to lift Alphabet’s overall valuation are its cloud efforts. Although it still lags both Amazon and Microsoft in the space, Google’s cloud businesses has doubled from US$1 billion per quarter to US$2 billion per quarter between the period of February 2018 to July 2019. This growth is projected to continue over the next twelve months helping to make investors bullish about its growth prospects.
Alphabet recently underwent a significant upheaval in its leadership with co-founders Sergey Brin and Larry Page stepping down from their leadership roles and handing the reigns over to Google CEO Sundar Pichai. Now at the helm of both Google and Alphabet, investors see Pichai as being a safe pair of hands who is capable of tackling the ongoing perception of security concerns and cultural issues that have mired Google, in particular, in recent times.
Analysts predict the next of the big US tech companies to crest the US$1 trillion valuation will be Facebook, which currently sits are around a US$650 billion market cap. Apple, in the meantime, could be headed towards a US$2 trillion valuation if continues on its current trajectory.