Google’s Parent Company, Alphabet Inc., Now a Trillion-Dollar Company

The Multinational Conglomerate Company is the fourth US company to reach $1T

Alphabet Inc. has become the fourth company in the US that has reached a USD 1 (AUD 1.45) trillion market value. The shares of the company increased by 0.8 per cent to reach USD 1450.16 (AUD 2102.32). The company’s main Google unit was founded in 1998 by Larry Page and Sergey Brin. They started it at a garage in Menlo Park, California.

 

With this achievement, Alphabet Inc. has joined the list of tech juggernauts, Microsoft, Amazon and Apple. All these companies have joined the trillion-dollar company club in the last two years only. Apple is leading the race with a market cap of USD 1.4 (AUD 2.02) trillion. Microsoft is behind at USD 1.3 (AUD 1.88) trillion and Amazon has the market cap of USD 931 (AUD 1.34) trillion.

 This achievement by Alphabet Inc. comes a few months after Mr. Page and Mr. Brin handed over the reins to the Chief Executive of Google, Sundar Pichai. This news had done well on Wall Street. After Alphabet Inc., Facebook is next in line to be close to the trillion-dollar mark. It has a market cap of USD 632.4 (AUD 916.4) billion.

 

Alphabet Inc. is a 22-year-old company which has grown exponentially since the second year in business and whose value escalated rapidly since going public in 2004. The company’s growth was also fuelled by some smart moves like the 2006 acquisition of YouTube that has been termed as the most lucrative and smartest deals in the history of the internet.

Though it might sound impressive, Alphabet Inc. becoming a trillion-dollar valuation doesn’t say much about the overall economic health of the company. The market cap is not used in a meaningful manner by the investors. It’s just a vanity metric that looks and sounds cool.

 

Now that Alphabet Inc. has become a trillion-dollar company, it would be nice if Google could finally start paying the taxes it needs to pay in Australia. After all, the company’s valuation is closer to our annual GDP. What do you think?