ELITE BUSINESS GROUP
The Trillion Dollar Club gets a little bigger
This Elite group of public companies now has six members with a prospect of a few more additions in the coming years
Going back all the way to 2018, the smartphone giant Apple was the first company to scale the heights and become the first Trillion dollar company. And the last time I reported on the Trillion Dollar Club, the four big techs were members of this exclusive group. In between this, the Saudi Oil giant Aramco launched the World’s biggest IPO at the end of 2019 — propelling itself to become a $2 trillion company on the second day of trading. However, the pandemic-driven Oil crash, saw the underlying asset plummet to zero.
Interestingly enough, the strong rebound in the commodity has propelled the only non-tech company back into the 6-member trillion-dollar club. The tech companies have continued to gain ground during the pandemic as the products & services provided by these companies became necessities. Apple actually became the First $2 trillion U.S company last August and has recently been joined by Microsoft to be the only two members of the super-exclusive ‘Two Trillion Dollar Club.’
But today, we are talking about the expanding Trillion-Dollar club. The last time I wrote about the World's 100 Biggest Companies, in June, there were five companies in the club — Apple, Microsoft, Saudi Aramco, Alphabet (Google) & Amazon. You can now add Facebook as the new entrant to the group. The social media giant has been hopping in and out of the $1T+ club in July 2021, and it still hovering precariously close to the level — closing at a $1.024 trillion valuation most recently.
The infographic above highlights the six companies currently in the $1T+ club and five more which have good prospects of entering the group in the near future. Of the six members of the group, all but Saudi Armaco is from the tech sector. Also, the five tech companies in the club also feature at the top of the list when it comes to naming the Most Innovative Companies of the World.
Data for the market cap was taken from the Companies Market Cap. Of the companies valued above $500 billion, Tesla is considered the most promising candidate to join the exclusive club. Some analysts have gone so far as to predict that Tesla might reach $3 trillion in market cap within the decade, owing to significant current and projected demand for electric vehicles (EVs) and driverless systems. The immense growth of the pioneer EV maker is a testament to this value proposition.
Looking at the strong demand for EVs and the shift towards a more sustainable future in full swing, I consider it as a real possibility — considering of course Tesla is able to overcome the chip supply issues soon and scale up its production significantly. Visa is another such company, which is moving ahead with its innovation and initiatives to expand into cryptocurrencies.
That begs the question — will the big techs leave everybody in the dust or will other players emerge to challenge their hegemony?
