Google Parent Company Alphabet Hits $1 Trillion Market Cap

Google parent-company Alphabet has hit $1 trillion in market capitalization, making it the fourth U.S. company to hit the milestone. CNBC reports: Apple was the first to hit the market cap milestone in 2018. Then, Microsoft and Amazon followed. Apple and Microsoft are still valued at more than a trillion dollars while Amazon has since fallen below the mark. Analysts are bullish on the company's newly appointed CEO, Sundar Pichai. In a surprise announcement in December 2019, Alphabet founder Larry Page announced plans to step down as CEO, along with co-founder and president Sergey Brin.

Pichai had already been the CEO of Google, which includes all the company's core businesses -- including search, advertising, YouTube and Android -- and generates substantially all its revenue and profits. But he reported to Page, who also oversaw other businesses making long-term bets on experimental technology like self-driving cars and package delivery drones. Now, he's in charge of the whole conglomerate, although Page and Brin still have control over most of the company's voting shares, giving them significant influence in major decisions. "Optimism also comes from the company's growth in its Cloud business, which -- while still far behind the leader Amazon and runner-up Microsoft -- doubled its revenue run rate from $1 billion to $2 billion per quarter between Feb. 2018 and July 2019," adds CNBC.

NOT QE4

[Gay Boner Sex]

Ah, the good old effects of "NOT QE4." ;)

Re:

[rtb61]

What a more interesting twist. Are those companies worth more than they were before or is the US dollar worth less than it was before. Consensus is beyond the imaginary value of those companies, yes, the US dollar is worth far less than it was before. All of those companies are also nor under planned direct attack from the Chinese, Russian and Indian economies, backed by their governments. Those valuations will not last, well, in global terms, in US dollar terms as the dollar plunges and it's debts explode,

Re:NOT QE4

[rmdingler]

US dollar versus trade weighted major currencies [ycharts.com] seems to indicate fairly steady value, albeit off a bit from the Dec 2016 peak.

I know, the US is easy to hate, but the dollar remains the world's favorite reserve currency, and it's the defacto currency of the world's inflationary nations.

Re:

[blindseer]

What a more interesting twist. Are those companies worth more than they were before or is the US dollar worth less than it was before.

I don't know and I don't care. It's just a bit of trivia based on an arbitrary milestone. Kind of like marking when a space probe reaches the distance in which light would take the time for all Star Wars episodes to play to reach it.
https://xkcd.com/2253/ [xkcd.com]

Re:

[gtall]

The biggest impediments to Russian, Chinese, and Indian development are internal to those countries. Russian and Chinese birthrates have plummeted leaving many older people unsupported by future generations. Russia also has the brain drain problem, anyone with a brain is looking to leaving. India has problems with climate change which will stress their economy. China and India have problems with pollution. All three have problems with the rule of law and graft. Russia and China because their commie dinosaur

Re:

[gtall]

QE4 is mainly for the banking sector and mainly to support short term borrowing. Alphabet's debt to equity ratio has gone up, but that is due mainly to long term borrowing. If you want to know what's floating the markets and the economy, look no further than the U.S. budget deficit. For 2019, it was nearly $1 Trillion. It is expected to top that in 2020 and 2021 courtesy of the last tax giveaway and structural features in how the U.S. taxes.

Congress and the alleged Administration promised the U.S. 3 % GDP g

99% Deadweight

[Jarwulf]

Funny thing is probably only a tiny portion of the company does any valuable legwork ie things other than shuffling code back and forth and ranting about microaggressions, a tinier portion is the brains responsible for almost all the trillion dollars of value, and an even tinier portion of what they do is of any benefit to humanity.

Re:

[The New Guy 2.0]

Yeah, the state of the GooglePlex is currently "YOU LET ROBERT WHUL IN!"

There's a too-many-men mess over there... seems like a all-female high school needs to invade.

Re: 99% Deadweight 1% buyouts

[Fast Adam]

Alphabet execs play monopoly a billion dollars at a time, must be nice for the 1% who were bought out instead of the 99% who were hired based on college degree.

Maybe...

[rlwinm]

Maybe they could use some of their resources to build a good search engine.

Re:

[Jarwulf]

They have a handful of ubernerds that actually make a pretty good engine and then an entire army of lawyers marketers and sjw hacks underneath to ruin it. Unaltered it'd probably be lightyears better than anything around. Its them monkeying around with the results for political and other reasons or to vacuum up your PI that ruins it.

Re: Maybe...

[astrofurter]

They used to have a great search engine. With it one could get a feel for the consensus of the Internet.

Alas, those good search results were sometimes inconvenient. So the algorithm that made Google a world leader had to be retired. Replaced by a new, overtly-evil algorithm that shovels corporate sponsored shilling, anticulture, and reactionary-Progressive propaganda down the users throat. While disappearing any information sources that go against the big corporate narrative.

The Four Comma Club

[Matthew Kwan]

Jeff Bezos must have been so pissed off when Amazon dropped out of the club.
Technically Saudi Aramco is also a member of the Four Comma Club, but that's based on a fairly small free float.

Just goes to show...

[astrofurter]

There's big money in being evil!

Thats a lot of ads

[AHuxley]

to block.

putchase price?

[m0rphm0nk3y]

Yeah...and this will mean anything when somebody BUYS a company for a trillion. An evaluation is more or less worth the paper it's written on and can be affected by a LOT of variables that aren't necessarily all above board.

Re:

[nonBORG]

You know that the company has shares right which you can buy. The way the valuation works is if the shares are traded for x and there are y total shares then the value of the company is x times y. So yes people are buying the company for a trillion every day.

Remember: This means devaluation of your income.

[BAReFO0t]

The more these companies are valued ... merely by magical belief that it is so, mind you ... the more money in total there exists. The more money they have, the more they can pay for things so they get them instead of somebody else. And hence the higher the prices then become. Relative to your income, which stays the same. So you now effectively got a pay cut.

This is why market growth is a bad thing for everyone, but those who grew.

Re:

[Antique Geekmeister]

Belief in money is not "magical". It's social. Permit me to highly recommend "Making Money", by Terry Pratchett, for explaining how economis work in a very entertaining way. He included inflation, fraud, and the ideas about how money can be decoupled from a physical resource like gold.

Re:

[nonBORG]

These companies are valued each day about 1 million times every time there is a share transaction. I think you know very little about market growth but just to point out. Wages (average) are up and the market is up, there is very little inflation so no facts to give evidence to your hypothesis.

Still undervalued

[m0rphy]

Alphabet is still significantly undervalued. The company has plenty of firepowers in reserve that has not yet been fully deployed.