Alphabet Inc. has hit a trillion-dollar market cap for the first time. The parent company of Google joins the likes of Apple, Amazon and Microsoft as the fourth United States-based firm to reach this unique milestone.
An exclusive club
This trillion-dollar cap is a recent phenomenon as Apple was the first of these companies to hit this number in 2018. Microsoft and Amazon followed their rival but the latter has since fallen just below the level.
The landmark event follows the appointment of Sundar Pichai as the corporation’s CEO last month. The executive was already the head of Google but his success in expanding on its core products saw him succeed Larry Page at the helm of Alphabet.
An extensive network
Pichai held responsibility for the bulk of Alphabet’s cash cows, such as its search, advertising, YouTube and Android services. However, according to CNBC, he now oversees long-term investments in experimental technology. This includes innovative projects such as self-driving cars and package delivery drones.
Alphabet has also been developing on its cloud services, looking to catch up with the leading duo of Amazon and Microsoft. It doubled its revenue run rate of this department from $1 billion to $2 billion per quarter between February 2018 and July 2019. It is also looking to see similar progress this year as it continues to invest in these services.
The Google Cloud Health segment has the potential to soar to the highest level with Google’s acquisition of FitBit. This purchase enables the tech giant to have access to data of millions of the device’s users.
Therefore, it will hold an abundance of information, which will help it continue to expand on its opportunities. The company has also tripled its sales force of its cloud department, which will come in use as it targets new business segments across the globe.
The next corporation to join Google and its counterparts in the trillion-dollar club is likely to be Facebook. The Mark Zuckerberg-founded company is the baby of the bunch but it already holds a market cap of $620 billion.
Besides its social media dominance, it has been seeing great success in its gaming and communication products such as Oracle and Portal. It is also set to change the digital currency market with the introduction of Libra this year.
For now, Google will be proud of its achievements but won’t be in any mood to slow down going by its record. Altogether, the 2020s will see tight competition between the five technological powerhouses.
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