The journey of the giant with a market value of 1 trillion yuan is very similar: service and cloud computing are the key
Apple, Amazon, Microsoft and Alphabet, the parent company of Google, account for 17% of the total market value of the S&P 500 index. Morgan Stanley said that this dominance is unprecedented.
Tencent Technology News According to foreign media reports, in the past few years, Apple, Amazon, Microsoft and Google's parent company Alphabet have all focused on services and cloud business for growth. In turn, the market has brought generous returns to these companies, because the market value of each technology company has climbed to a record level.
A year and a half ago, in August 2018, Apple became the first American company with a market capitalization of more than $1 trillion. Analysts pointed out at the time that Apple's growing revenue from software and services was the catalyst driving market capitalization.
Five weeks later, Amazon, led by CEO Jeff Bezos, reached a market value of $1 trillion for the first time. Although the e-commerce giant only briefly broke through this market value threshold, analysts again pointed out that Amazon's AWS cloud service business is the key driving force for the company's growth.
Microsoft was the third company to exceed the market value of $1 trillion last April. After releasing better than expected financial reports, its market value further rose. The company's sales growth in that quarter, like other quarters, was driven by the growth of its public cloud service Azure. Many large companies handed over their server and data storage business to Microsoft.
Then, just two weeks ago, Alphabet reached a market value of $1 trillion. Although its cloud service growth lags behind Amazon and Microsoft, Alphabet's cloud service revenue doubled from February 2018 to July 2019, from $1 billion per quarter to $2 billion per quarter.
Although Amazon's market value growth lagged behind last year, the company joined the trillion dollar club again on Friday. After a shocking strong financial report was released, Amazon's market value rose by about 96 billion dollars from Thursday's closing - a one-day increase that exceeded the market value of UPS or 3M.
The stock performance of these technology giants also dwarfs that of other companies. These four companies account for 17% of the total market value of the S&P 500 index. Morgan Stanley said that this dominance is unprecedented.
