The TOP5 largest technology companies in the world are worth more than the remaining 282 giant international corporations of various focuses.
When the commercial and social value of brands is written about in business magazines, it's usually big numbers, dollars, euros, billions, trillions, percentages and market shares. These numbers are important, but they don't give people an idea of how big these companies really are.
The website marketwatch.com published a simple pie chart, on which it placed the 287 largest companies in the world. Among them we find the notorious Google, Apple, but also brands that the public is not so familiar with: Waters Corp., Ameren Corp., AMETEK Inc., Newmont Mining, PPL Corp. and many others. Their influence on the global industry is extraordinary, and each of them boasts astronomical turnover and assets.
source: Ritholtz Wealth Management
The chart shows an incredible disparity between the value of 282 companies relative to the five largest tech giants. The brand value of Apple, Amazon, Alphabet (Google), Microsoft and Facebook is identical to the value of the other 282 most valuable companies in the world with diverse focuses.
Michael Batnick, the creator of the chart and CEO of Ritholtz Wealth Management, illustrates the dominance of tech giants in today’s world in an easy-to-understand way. He says that “the value of Apple, Amazon, Facebook, Google, and Microsoft has grown from $1.2 trillion to $4 trillion in the last five years.” The companies reached this milestone just two weeks ago, and their value is not expected to stagnate or even decline.
There are suggestions that we are witnessing a modern-day dot-com bubble from the late 1990s. The Internet stock bubble is a term used to describe a period in which the value of so-called dot-com companies (using the .com domain) rose sharply. After the bubble cooled, the value fell sharply and many companies went bankrupt. (source). The successful companies at that time were Amazon.com, eBay, Google, MSN, PayPal (now a subsidiary of eBay) and Yahoo! The unsuccessful companies included the now unknown Boo.com, Kozmo.com, Pets.com and Webvan.
Batnick dismisses these concerns. The main difference between today's situation and the bubble of 20 years ago is that today's technology leaders have real value based on sales. "These five companies have made almost half a billion dollars in the last five years and are currently trading at 37 times earnings and 5.5 times sales," Batnick says.
The development of the value of the above-mentioned technology companies is favorable not only over the past five years, but also this year. This year, Apple has improved by 13%, Amazon.com has increased by 58%, Facebook has increased by 19% year-on-year, Microsoft has jumped by 23% and Alphabet by 15%.
Sources:
https://www.marketwatch.com/story/this-1-chart-puts-mega-techs-trillions-of-market-value-into-eye-popping-perspective-2018-07-18
https://sk.wikipedia.org/wiki/Internetov%C3%A1_akciov%C3%A1_bublina