Google’s parent, Alphabet Inc. headed by our very own Sundar Pichai is said to grab a market cap of $1 trillion, making it 2nd conglomerate led by an Indian. Microsoft led by Satya Nadella (in 2014) is another company that $1 trillion market cap.
Sundar Pichai became the head of Alphabet in December last year, who was the CEO of Google since 2015. Saudi Aramco is said to be the world’s most valuable company grabbing approx. $1.85 trillion, Amazon is said to be behind Saudi Aramco with a $1 trillion mark.
But the journey of Alphabet has not been a smooth one. Being a tech company, it has been under limelight because of a privacy breach. When Larry Page & Sergey Brin decided to step down from leadership roles, there was a serious doubt if Sundar Pichai will be able to reach the heights Google dreamt of.
After years of hard work and dedication, Alphabet has one more achievement in their bag, to be a $1 trillion conglomerate. Google’s sales are going up as they did some 10 years ago. Google’s continued growth over last years has been mainly due to advertising, quite a few acquisitions and its will to expand in core sectors – cloud computing and self-driving car division Waymo.
Apple Inc. was the 1st public company to surpass a $1 trillion market cap in Aug 2018. But recently, its sales from the app store are gradually declining if we compare its annual stats.
Google’s stock returned 26% last year and is up 5% this year. The company’s share has continued to move higher recently. All thanks to Google’s innovative approach and effective leadership the company experienced.
The main issue with the elites of this group is that the companies face humongous pressure in upcoming earnings reports to justify their valuation.
But isn’t pressure everywhere? There is pressure for companies to become profitable, there is pressure for companies to scale up. The intensity of pressure just reaches a whole new level in a $1 trillion group.
No company gets into a $1 trillion group just like that. One needs to take care of its business growth, financials, customers and investors (along with a plethora of other factors).
We wish all the best to Google for reaching the club. Now, the conglomerate aims to be a $2 trillion group. Let’s hope the best for our favorite search engine.