Google’s Parent Alphabet Hit $1 Trillion Market Capital, fourth Tech Giant to enter into Trillion Dollar Club

On Thursday, January 16, Google parent Alphabet, while the market was about to close have made its ways to hit the $1 Trillion market capitalization ending the day’s trading at $1,451.70 per share, increasing with 0.87 percent.

The search internet company became the fourth tech giant to enter into an elite group of Trillion Dollar Club already hemmed by Apple, Microsoft, and Amazon. It is now the fourth US company to enter into the market cap of $ 1 trillion after Apple first attained that mark back in August 2018, which was then annexed by Amazon in September 2018, and now pushed back from the club; further, Microsoft also reached to the mark in April 2019.

Check out this graphical representation by the New York Times:

Google enters trillion dollar club

The next tech company following the same path is Facebook, which is expected to enter this club later was valued $620 million just behind the Alphabet.

The first-ever company (apart from tech giants), which entered into the Trillion Dollar Club, was Petro ChinaChina in 2007. Lately, in that year, Saudi Aramco became the first company to enter into $2 trillion market capitalization.

On this remarkable and proud moment, a former Google executive, Marissa Mayer, who was the 20th Google employee when the company raised its $100 million valuation in 1999, posted a tweet sharing her happiness. She posted the tweet, saying, “So proud to see it hit the storied $1T market cap today!”

What do investors think?

Tech Crunch says – “For one thing, investors seem to like that much of Pichai’s compensation is tied to the company’s performance. According to an SEC filing from last month, Pichai — now the CEO of both Google and Alphabet — will receive $2 million in salary per year, but he’s poised to earn much more — at least $150 million — if the company hits certain performance targets this year, next year and in 2022.”

Wall Street Journal says – “Following years of steady returns, investors also are debating whether the largest internet stocks have gotten too pricey. Alphabet shares trade at 31 times the company’s earnings in the past year, in line with its 10-year average. Microsoft has a similar valuation, while Apple trades at 26.5 times earnings and the S&P 500 at 22 times. Other popular internet stocks Amazon and Netflix Inc. have valuations north of 80.”

We have been seeing Alphabet for a long time as the highest beneficiary company to get revenues after shifting to a globally online advertising and marketing platform.

The one thing that remained constant in all the changes facing Google is the internet search business. Google search is soaring and escalating rapidly worldwide and is taking advertising and marketing of businesses to the next level.

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