Current:Home > MarketsRekubit-These top stocks could Join Apple, Microsoft, and Nvidia in the $3 Trillion Club -TrueNorth Capital Hub
Rekubit-These top stocks could Join Apple, Microsoft, and Nvidia in the $3 Trillion Club
Indexbit View
Date:2025-04-07 04:32:25
The RekubitU.S. Senate is sometimes called "the most exclusive club." However, I can think of a club that's much more exclusive than the legislative body, which has 100 members. It's the $3 trillion club.
Only three companies in the world boast market caps of $3 trillion or more: Apple, Microsoft, and Nvidia. But this club might be a little less exclusive in the not-too-distant future. Here are three unstoppable stocks that could join Apple, Microsoft, and Nvidia in the $3 trillion club.
1. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is in the driver's seat to become the next $3 trillion company. The Google parent's market cap currently stands at around $2.3 trillion. At the rate the stock is climbing, it's not out of the question that Alphabet could join Apple, Microsoft, and Nvidia by early 2025.
Most of Alphabet's revenue and profits continue to be generated by its Google Search business. While some have predicted the rise of generative AI presents an existential threat to search engines, Google has thrived. CEO Sundar Pichai noted in Alphabet's first-quarter earnings call that Google's new AI overviews have increased search usage and user satisfaction with search results.
Google Cloud should enjoy a strong tailwind from AI for years to come. The unit's sales jumped 28% year over year in Q1 with operating income soaring 371%. Google Cloud is especially popular with generative AI start-ups, with more than 60% using its cloud service.
YouTube is another key growth driver for the company. It's the leader in U.S. streaming with viewers watching over 1 billion hours of content daily. YouTube now has over 100 million music and premium service subscribers, while YouTube TV claims over 8 million paid subscribers.
2. Amazon
Amazon (NASDAQ: AMZN) isn't too far behind Alphabet, with a market cap hovering around $2 trillion. I fully expect the e-commerce and cloud services giant will also take a spot in the $3 trillion club within the next two or three years.
Like Google Cloud, Amazon Web Services (AWS) should deliver strong growth in the years ahead thanks to the demand for building and deploying AI models. AWS is the leader in the cloud services market. I suspect it will stay on top because of the appeal of new products such as AI-powered software development assistant Q.
Amazon dominates the e-commerce market. Cost improvements in the company's e-commerce platform and distribution network have helped to boost profitability. As Amazon increases delivery speed further, its e-commerce revenue and profits should grow as customers shop online more frequently.
Advertising is also an important growth engine for Amazon. In Q1, advertising sales soared 24% year over year on a constant-currency basis. This growth could increase in the future as advertising on Prime Video gains momentum.
3. Meta Platforms
Meta Platforms (NASDAQ: META) has a steeper hill to climb to join the $3 trillion club. The social media leader's market cap of $1.3 trillion is well below the market caps of Alphabet and Amazon. However, I think it's only a matter of time before Meta reaches the $3 trillion threshold.
The company is an advertising juggernaut. Its apps, including Facebook, Instagram, Messenger, and WhatsApp, reach more than 3.2 billion people across the world every day. Advertisers can' ignore such a massive audience.
Meta's efforts to more efficiently monetize its products, especially Reels, are paying off handsomely. Profits more than doubled year over year in Q1. The company continues to get better and better at showing ads to the right person at the right time.
AI presents a major growth opportunity for Meta. In particular, CEO Mark Zuckerberg believes that AI-powered business messaging will be the "next major pillar" of the company's business.
Should you buy these future members of the $3 trillion club?
You might think Alphabet, Amazon, and Meta are no-brainer stocks to buy if they're truly on track to join the $3 trillion club. And you'd be right, in my view.
All three stocks have tremendous growth prospects. The growth drivers already mentioned don't even tell the full story. For example, robotaxis could be huge opportunities for Alphabet's Waymo and Amazon's Zoox units. Meta could be a bigger winner in virtual reality and the metaverse. I think Alphabet, Amazon, and Meta are great stocks to buy and hold.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
Don’t miss this second chance at a potentially lucrative opportunity
Offer from the Motley Fool: Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,904!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,562!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $349,245!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
See 3 “Double Down” stocks »
*Stock Advisor returns as of July 15, 2024
veryGood! (2486)
Related
- The city of Chicago is ordered to pay nearly $80M for a police chase that killed a 10
- Why Patrick Mahomes Says Wife Brittany Has a “Good Sense” on How to Handle Online Haters
- House Republicans' CHOICE Act would roll back some Obamacare protections
- Raven-Symoné Reveals How She Really Feels About the Ozempic Craze
- As Trump Enters Office, a Ripe Oil and Gas Target Appears: An Alabama National Forest
- Up First briefing: State of the economy; a possible Trump indictment; difficult bosses
- Hurricanes Ian and Nicole Left Devastating Flooding in Central Florida. Will it Happen Again?
- Could the U.S. still see a recession? A handy primer about the confusing economy
- Intel's stock did something it hasn't done since 2022
- Inflation may be cooling, but the housing market is still too hot for many buyers
Ranking
- Sam Taylor
- The Real Reason Taylor Lautner Let Fans Mispronounce His Name for Decades
- Score This Sweat-Wicking Sports Bra With 25,700+ 5-Star Reviews For $17 on Amazon Prime Day 2023
- Why Chinese Aluminum Producers Emit So Much of Some of the World’s Most Damaging Greenhouse Gases
- Moving abroad can be expensive: These 5 countries will 'pay' you to move there
- “Strong and Well” Jamie Foxx Helps Return Fan’s Lost Purse During Outing in Chicago
- After Criticism, Gas Industry Official Withdraws as Candidate for Maryland’s Public Service Commission
- Army Corps of Engineers Withdraws Approval of Plans to Dredge a Superfund Site on the Texas Gulf Coast for Oil Tanker Traffic
Recommendation
The 401(k) millionaires club keeps growing. We'll tell you how to join.
Cory Wharton's Baby Girl Struggles to Breathe in Gut-Wrenching Teen Mom Preview
Emmy Nominations 2023 Are Finally Here: See the Full List
How Should We Think About the End of the World as We Know it?
Taylor Swift Eras Archive site launches on singer's 35th birthday. What is it?
Amazon Prime Day 2023: Get a Portable Garment Steamer With 65,000+ 5-Star Amazon Reviews for Just $28
Natural gas can rival coal's climate-warming potential when leaks are counted
These 25 Amazon Prime Day 2023 Deals Are Big Sellout Risks: Laneige, Yeti, Color Wow, Kindle, and More