Best stocks with 1 trillion market cap: So you want to invest in the biggest and most successful companies, do you? Not a bad idea. Some of the largest companies in the world by market capitalization are technology leaders and innovators that continue to shape how we live and work. When you invest in these titans of industry with staying power, your money has the potential for solid growth over the long run.
In this article we’ll look at five of the best stocks with over a trillion dollars in market cap. These companies are household names for good reason. They have proven business models, loyal customers, and the resources to keep innovating and expanding to new markets. While past performance is no guarantee of future results, these mega-cap companies have shown they have what it takes to generate strong returns over decades. If you’re looking for stability and growth in one package, read on to see why these stocks should be on your buy list.
Apple: The First Company to Hit $1 Trillion Market Cap
Apple was the first company to reach a $1 trillion market capitalization. As of 2021, Apple’s market cap sits at over $2.2 trillion, cementing its status as the world’s most valuable company.
Apple’s stock price has skyrocketed over the past decade thanks to the immense popularity of the iPhone. Since the first iPhone launched in 2007, Apple has sold over 1.65 billion iPhones worldwide. The iPhone is a cultural icon and has transformed how we communicate, access information, and share memories.
The services segment, which includes the App Store, Apple Music, and Apple Pay, has also become a key growth driver for Apple. Services revenue reached an all-time high of $53.8 billion in 2020, up 16% year over year. As iPhone growth has slowed, services have picked up the slack.
However, Apple faces risks that could threaten future growth like greater competition from rivals, supply chain issues that delay product releases, or geopolitical factors like trade wars. Still, with its loyal customer base, best-in-class products, and pivot to services, Apple is poised to remain the world’s most valuable company for years to come.
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Apple’s rise to become the first trillion-dollar company is a story of vision, innovation, and capturing the hearts and minds of customers around the globe. As technology continues to transform our lives in new ways, Apple is sure to be at the forefront, creating the tools and experiences that shape the future.
Microsoft: A Tech Giant Approaching the Trillion Dollar Mark
Microsoft is one of the world’s largest companies and a pioneer of personal computing. Founded in 1975, Microsoft’s software and cloud solutions have become essential tools for both businesses and individuals. As Microsoft continues to innovate and adapt to changes in technology, its stock price and market cap have soared.
A Household Name and Blue Chip Stock
Microsoft’s Windows operating system and Office productivity software are used by over a billion people worldwide. The company’s move into cloud computing with Azure has made it a leader in that fast-growing market as well. Because Microsoft’s tools and services are so widely used, the company benefits from a steady stream of revenue and cash flow. This makes Microsoft stock a favorite of long-term investors and a pillar of stability in the tech sector.
Growth Potential in Cloud and Gaming
While Microsoft’s traditional software business remains strong, two areas primed for growth are the cloud computing and gaming. Microsoft Azure is the second largest cloud platform behind Amazon Web Services. As more companies migrate to the cloud, Azure revenue should continue climbing. Microsoft is also investing heavily in gaming, with acquisitions like Mojang (Minecraft) and ZeniMax (Doom, Fallout). Its Xbox Game Pass subscription service and cloud gaming platform could make Microsoft a major player in the gaming industry for years to come.
With its household name, financial strength and investments in high-growth areas like the cloud and gaming, Microsoft has what it takes to reach and sustain a $1 trillion market cap. For long-term investors, Microsoft stock remains an appealing option in big tech.
Saudi Aramco: The Oil Company That Briefly Topped $1 Trillion
Saudi Aramco is the world’s largest oil company. In December 2019, Saudi Aramco had an initial public offering (IPO) and briefly reached a $1 trillion market capitalization, making it the most valuable company in the world at the time.
Massive Oil Reserves
Saudi Aramco has the second largest oil reserves in the world. It has about 260 billion barrels of oil in reserve, with the lowest oil extraction costs of any company. It can produce oil very cheaply, at around $4 per barrel. This allows Saudi Aramco to generate huge profits even when oil prices are low.
Government Controlled
Saudi Aramco is owned by the Saudi government, which controls about 98% of the company. The Saudi kingdom relies heavily on the oil industry and Saudi Aramco for economic and political power. The government uses profits from Saudi Aramco to fund government spending and programs.
While Saudi Aramco likely won’t reach a $1 trillion market cap again soon given lower oil prices, its massive oil reserves, low costs, and close government ties mean it will continue to be an enormously profitable company and play an important role in the Saudi and global economies for decades to come. The company is investing heavily in new oil fields and production techniques to ensure it can keep pumping oil at massive volumes for generations.
For investors, Saudi Aramco provides exposure to the oil industry and can be a good long-term investment if you believe oil prices will rise over time. However, its close ties to Saudi Arabia also introduce geopolitical risks that could negatively impact the stock price. But as the largest oil company in the world, Saudi Aramco will remain a dominant force.
Conclusion
So there you have it, some of the biggest companies by market capitalization that also have a ton of potential for future growth. While tech giants like Apple, Microsoft, and Amazon currently dominate the list, there are opportunities in other sectors as well with companies like Johnson & Johnson. The truth is, no one has a crystal ball to predict the future, but by choosing stable companies with a solid track record of success and innovation, you’re making a bet that they’ll continue to thrive for years to come. If you’re looking to invest in the biggest and the best, any of these companies would make a great addition to your portfolio. And who knows, some of today’s up and coming companies could eventually join the trillion-dollar club. But for now, you can’t go wrong with these market leaders. Go forth and prosper!
