A fierce race between companies to join the trillion-dollar club… Financial institutions in the face of “technology”

A fierce race between companies to join the trillion-dollar club… Financial institutions in the face of “technology”
A fierce race between companies to join the trillion-dollar club… Financial institutions in the face of “technology”

What is the next company that could be worth a trillion dollars? This question occupies great importance among investors and speculators in the field of stocks in major economies. Knowing the answer to it may enable you to achieve enormous wealth if you invest quickly by buying shares of that company, which is expected to reach a value of one trillion dollars during the coming period, for this reason there is currently a controversy between Experts about their estimates of the company or companies, whose market value will reach this figure.
But what is a trillion dollars? First, it is certain that it is a very large number, and it is not widely circulated in economics or in the world of “normal” business and finance. In fact, it is dedicated more to measuring economic inputs and outputs related to countries than to companies or economic institutions. For example, the US budget on July 1 ( Last July, it amounted to 6.8 trillion dollars, and US government revenues were 3.8 trillion dollars, the US fiscal deficit was three trillion dollars, and the total US debt was 23 trillion dollars. To a large extent, but this does not negate that some numbers are still very large and unusual for most people.
The matter does not stop at the issue of the meaning of a trillion dollars, but also extends to the currency in which the assessment is carried out, which is the US dollar as the global currency, and because the assessment is done in dollars, it often seems more US assessment than global assessment, if the assessment of a company is in the pound sterling, for example. , it will be more difficult for her to reach the trillion pounds, because the sterling exchange rate is more than the dollar.
The idea of ​​how to evaluate the company itself is also controversial, as the evaluation is often done in terms of the market value of the company, and is calculated on the basis of the number of company shares multiplied by the value of one share at the moment of evaluation, and this means that the value of the company, according to this criterion, will be volatile, if the number of its shares is often What is fixed, the value of the stock changes from one minute to another in the stock market, and this is what happened with Facebook if its value exceeded one trillion dollars, then retreated from it and then exceeded it again.
In any case, it is difficult to accurately and definitively predict which company will join the club of trillion companies? Will it have the ability to continue rising to higher numbers, will it continue to grow but weak, or will it decline at a later time? The first company to enter history as the first to break the billion-dollar figure is US Steel, and that was at the beginning of the 20th century, and this figure was the result of mergers in the steel market, today it is worth six billion dollars, evaluations are subject to various types of uncertainty, a viral pandemic New developments that could make the global economy decline again, and with it the ambitions of some companies to reach the trillions mark.
However, using the growth rates of the past ten years, and examining the most prominent economic sectors in which companies operating in it can achieve impressive results, we can form a roadmap for companies that are likely to become members of the trillion-dollar club soon.
Before discussing the list of newcomers, it is worth noting that the list of companies whose value is or exceed one trillion dollars is a very small list, and in the United States, the largest economy in the world, there are only five American companies that can claim that they have reached this achievement (Aramco Saudi Arabia is valued at about two trillion US dollars, but it is not traded on the US stock exchanges yet.
Of course, Apple occupies the top of the list, as it is the most valuable company in the United States and the world, and it was the first international company whose value exceeded the trillion dollar threshold, with an estimated market value of about 2.5 trillion dollars, and the company is among the group of companies, which shone strongly during the Corona pandemic period, due to High demand from consumers to acquire its technology products, followed by Microsoft, with a value of $2.2 trillion, then Amazon, the e-commerce giant, with $1.74 trillion, then Alpha Bit, the parent company of Google, with a value of 1.67 trillion, and Facebook, whose value exceeded $1 trillion. Moreover.
But what are the most prominent candidates to join the elite trillion club next year? Answers and assessments vary, but a number of investment experts believe that the newcomer will not be an American company this time.
He tells “The Economist”, R. De Paul, the investment expert, “the Chinese company Tencent, which founded 1998, is the most prominent candidate for membership in the trillion club next year, and its market value ranged between 740 and 742 billion US dollars last July, and because it is a multinational holding company in the field of technology, it has many Its subsidiaries, and globally market various Internet-related services and products, including entertainment, artificial intelligence and other technologies.
Its growth prospects are broad, and Tencent QQ, a popular instant messaging platform in China launched in 1999, as well as the Tencent video game platform responsible for some of the most popular video games, contributed one of the highest profits ever, as well as PayPay, an online payment system similar to Paypal, makes the Chinese company’s activities highly diversified and integrated, thus enhancing its growth potential.
In fact, in February, the Chinese company almost joined the trillion dollar club before the American company Facebook, with its market value at the time reaching 961 billion dollars, but the campaign launched by the Chinese authorities against the e-commerce company, Alibaba, paid The company officials have to be more careful in expanding their investment activities in order to avoid entering into a costly clash with the leaders of the Chinese Communist Party.
Certainly, not everyone agrees with the idea that a Chinese company in the field of technology will be the next member of the trillion-dollar club. It may be the first Chinese company to enter the club, but it is not certain that it will precede the American company Visa for electronic payments, as Visa is closely related to the recovery economic, given that it receives a large part of the transactions, which take place through the global electronic payments network.
In turn, he tells The Economist, Willing Smith of Capital Research Company, “With the decline in the use of cash in the world, especially in advanced economies, and whether there is an economic recovery or challenges such as those caused by the Corona pandemic, the need for credit payment cards is always urgent, especially with the shift in Consumer purchasing activities have led to online e-commerce, where direct financial payments are absent.
He added: “Because Visa is the largest company in the credit card payment market, in a country such as the United Kingdom and Ireland it dominates 80 percent of the market, and last year about 188 billion purchase transactions were made worldwide using Visa payment cards, which is the largest network American credit cards.
He stated, “As of September 2020, there were 343 million Visa credit cards in circulation in the United States and 798 million Visa cards in circulation outside the United States, all of which makes it the most prominent candidate to join the trillion club soon.”
So, the assessments about the newcomer of trillion-dollar companies do not stop at the borders of whether they are Chinese or American, but also extend to competition between technology companies and financial institutions.
In this context, Dr. Pancrest Black Will, Professor of Financial Analysis at University College London, believes that the race may be in the interest of technology companies at the present time. 74 percent of the electric vehicle market is in the United States.
He explained to Al-Iqtisadiah: “Although electric cars are the spearhead of Tesla, and the largest source of revenue, it is also looking for sustainable solutions to other issues such as clean energy through solar panels, and Tesla Energy is one of the largest global suppliers of battery storage systems. The company could reach a market value of about a trillion dollars by next year or the next due to the continuous increase in global demand for electric cars.”
The fierce competition between technology companies and financial institutions to reach the trillion dollars does not negate that some experts believe that the markets may witness a surprise of the great caliber that companies that invest mainly in other areas obtain the membership card.
Dr. Margaret Richard, professor of international economics at the University of Bromley, believes that two companies in two different fields have a very good chance of getting ahead of everyone else on the trillion-dollar journey.
She told Al-Eqtisadiah: “They are a Chinese company and the first American one working in the field of soft drinks and the other in the field of entertainment. The Chinese company, Queshu Motai, can break the trillion barrier by 2024, and it is partly owned by the Chinese government and specializes in the beverage industry, and its drinks are popular in China.” And many countries, which enjoy strong relations with Chinese markets.
She added, “The Chinese company is the largest beverage company in the world, while the other company is Netflix Entertainment, which witnessed amazing growth during the Corona pandemic period, and it currently has 209 million subscribers, and 40% of what it broadcasts is of its own production, and it is likely that it is the largest entertainment company currently in the world.” world, and could become one of the trillion elites by 2024.”

 
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