Technology companies have overtaken energy and industrial leaders in market value over the past two decades. Nvidia leads at $4.3 trillion, Microsoft at $3.8 trillion, and Apple at $3.4 trillion. Alphabet sits at $2.4 trillion and has multiple growth avenues, including search, cloud, and AI, that could propel it past $3 trillion. Alphabet faces antitrust litigation alleging monopolistic behavior in digital advertising and search; courts have ruled against the company and remedies are pending. A breakup is possible but sum-of-parts analysis by Gil Luria suggests a breakup could produce a valuation above $3.7 trillion, potentially benefiting shareholders.
In the two decades since, there's been a paradigm shift, and technology leads the field. The companies topping the list need little introduction. AI chipmaker Nvidia heads the pack at $4.3 trillion as of this writing, hitting record highs multiple times this year. Cloud and software specialist Microsoft is also within striking distance of a new record high, worth $3.8 trillion. Rounding out this tech triad is iPhone maker Apple at $3.4 trillion.
I think it's important to address the elephant in the room. The past couple of years have been a legal quagmire for Alphabet. The company has been embroiled in several court cases alleging that it held a monopoly in the digital advertising and online search markets. Those cases were decided against the Google parent, and the courts are weighing the appropriate remedies. A decision is expected later this month.
The most severe remedy would likely be a breakup of the company, which rightfully has some investors concerned. However, some on Wall Street believe that shareholders could actually benefit if that were to occur. D.A. Davidson analyst Gil Luria calculated that, in a "sum of the parts" valuation, Alphabet could be worth more than $3.7 trillion, representing a 52% increase over its current market capitalization. This suggests a breakup isn't necessarily the worst-cas
Collection
[
|
...
]