Google parent Alphabet Inc., the holding company that consists of a wide range of ventures in addition to the search giant, is inching toward a $1 trillion valuation after positive analyst commentary triggered a 1.7% rise in shares, according to Bloomberg.
Now, at $980 billion after a nearly 40% increase following a low in June, Alphabet’s looking like the next most likely contender. Per Bloomberg, 40 analysts currently recommend buying Alphabet, and many expect 2020 trends and election year ad spending to benefit its main subsidiary, Google.
While it is true that Apple was the first in today’s economy to hit a $1 trillion market capitalization, Money pointed out after it happened that if you account for inflation, multinational trading companies in the 1700s and 1800s were valued well above that mark. And oil companies like Standard Oil, Saudi Aramco and PetroChina also passed that valuation more recently after market surges at their respective peaks. Other companies to briefly cross the 10-figure number: Microsoft and Amazon.
But the relevance of those calculations doesn’t tell us much about today’s economy except to point out the volatility of the global economy. While it looks good for Alphabet and other tech giants at the moment, breaking up those massive corporations has been a big talking point for the more left-leaning Democratic presidential candidates. And if that comes to pass (though the lack of a real plan for how to do that makes it unlikely, according to many observers), it’s anybody’s game.