This week we saw Google’s parent company Alphabet (NASDAQ: GOOGL) closing with a market valuation of $1.02 Trillion and entering the exclusive Trillion Dollar tech market club. Alphabet now joins Microsoft (NASDAQ: MSFT) currently trading at $167 per share with a $1.27 Trillion market capitalization and Apple trading at $318.7 per share with a market cap of $1.40 Trillion.

Alphabet has now joined this exclusive club on the back of an exemplary run over the past year. over the past year, Alphabet has seen a meteoric rise from $1,100 in Jan-2019 a share to the current market price of $1,479 per share delivering an enviable annual return of 37.2% to its shareholders.

While Alphabet’s charts look strong from a technical point, a degree of cognizance of its current fundamentals is also warranted. Alphabet is currently estimated to be trading at a forward P/E ratio of 26x. While this seems reasonable, a lot will be determined by the earnings projections and performance by Alphabet in the coming years.

While on the topic of the Trillion Dollar tech club, it needs to be noted that Amazon (NASDAQ: AMZN), an early entrant to the exclusive club trades pretty close at $1,864 per share and a valuation of $924.52 billion. Still a fair distance away but showing strong momentum is Facebook (NASDAQ: FB) currently trading at $222 per share with a market capitalization of $633.49 billion.

Facebook is expected to release its quarterly earnings on 29-Jan-2020 and Amazon’s earning release is slated for 30-Jan-2020.

Disclosure: The Author is Long on Facebook shares

Leave a Reply

Your email address will not be published. Required fields are marked *