If there’s one constant on Wall Street that every investor should be aware of, it’s change. History shows that over time, the largest companies on Wall Street, market capitalization are constantly reworked.
In 2000, branded companies like Nokia, IntelAnd General Electric were among the top 10 publicly traded companies by market capitalization. Today, only one of those top 10 companies from 2000 is still among the largest in the world (I’ll come back to that a little later).
No one has a crystal ball that can predict the future of Wall Street with 100% accuracy. But that doesn’t stop investors from making educated guesses about the future, which I’m about to do now.
Although technological innovations, mergers, acquisitions, splits, and economic events may be extremely difficult to predict in the coming years, I believe the following five stocks will be the largest billion-dollar companies by 2035 – and artificial intelligence (AI) Titan Nvidiawhich maybe in a gigantic bubblewill not be part of it!
1. Amazon
By 2035, I hope the e-commerce giant Amazon (NASDAQ:AMZN) will undoubtedly be the largest publicly traded company in the United States
The fuel expected to help Amazon capture the crown as Wall Street leader in terms of market capitalization is the cloud infrastructure services platform Amazon Web Services (AWS). Enterprise cloud spending is still in its early stages of increasing, but AWS already does $100 billion in annual sales and has captured a 31% share of global spending on cloud infrastructure services, as of late of 2023, according to Canalys. Cloud service margins are exploding online retail margins. As AWS grows, Amazon’s operating cash flow can grow at a rate substantially faster pace than its total sales.
Amazon’s subscription services and advertising services segments are also expected to hold up. The company surpassed 200 million Prime subscribers three years ago and has since added exclusive rights to Thursday Night Football and expanded its content library. The exceptional pricing power associated with Prime is expected to significantly increase sales and cash flow in this segment.
Meanwhile, Amazon attracts about 2.5 billion people to its site each month, which equates to strong ad pricing power.
I expect Amazon’s cash flow to push its valuation north of $5 trillion over the next 11 years.
2.Microsoft
Remember that one stock I alluded to earlier, which is the only holdover from the top 10 companies by market capitalization in 2000? It’s a software giant Microsoft (NASDAQ:MSFT). I expect this cash cow of a company to maintain its place in the top five for the decade to come.
The not-so-subtle secret to Microsoft’s success lies in its uncanny ability to blend the old with the new. For example, Windows may not be a growth segment like it was 25 years ago, but it remains undisputed as the world’s leading operating system in terms of market share. Microsoft continues to generate considerable cash flow from existing segments…
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
