On Aug. 2, 2018, something happened that had never before occurred on an American stock exchange: Apple‘s (NASDAQ:AAPL) total value surpassed the $1 trillion valuation mark. And just one month later, e-commerce giant Amazon (NASDAQ:AMZN) crossed the same threshold.
Both stocks have sunk since then, and neither has a market capitalization of more than $1 trillion anymore. Today, the $1 trillion club has no members, which raises the question: Which company will be next to breach the $1 trillion mark? Of course, Apple and Amazon could shoot back up, but there are three other companies that seem quite capable of hitting $1 trillion — maybe even in 2019.
You probably know of software giant Microsoft (NASDAQ:MSFT) and Google parent Alphabet(NASDAQ:GOOGL) (NASDAQ:GOOG). And you may be familiar with Berkshire Hathaway(NYSE:BRK-A) (NYSE:BRK-B), the company run by celebrated investor Warren Buffett.
|Company||What It Does||Current Market Cap|
|Microsoft||Maker of Windows and OfficeSuite||$880 billion|
|Alphabet||Parent company of Google||$835 billion|
|Berkshire Hathaway||Energy and insurance conglomerate||$505 billion|
But before you take up a position in these behemoths, we’ll cover several important caveats so you know what you’re buying into.
Why is the $1 trillion mark so important?
First, let’s get some definitions out of the way. Market capitalization — or “market cap” — represents the total value of a company. If you wanted to buy the entire thing, the market cap is what you’d have to pay. While most finance websites calculate it for you, market cap is simply the number of shares outstanding multiplied by the price per share.
While there’s no industry-standard definition, stocks generally fall into one of five categories based on size…
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