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  • Apple remains the world’s largest company by market capitalisation

    Apple remains the world’s largest company by market capitalisation

    The market capitalisation of the 100 largest listed companies in the world increased by over USD 10 trillion (48%) between April 2020 and March 2021.

    By 31 March 2021, a new record high of USD 31.7 trillion had been reached, according to PwC.

    All sectors represented in the Top 100 list saw substantial increases, ranging from 25% to 75%, in market capitalisation during the year to March 2021.

    Technology continues to be the largest sector in terms of market capitalisation (USD 10.5 trillion). Global Top 100 Technology companies saw a 71% increase from their March 2020 value.

    Industrials and Basic Materials also outperformed other sectors, with increases of 75% and 68%, respectively.

    The worst-performing sectors in the Global Top 100 were Health Care, with 25%, and Energy and Utilities, at 26%.

    United States continues to dominate the Global Top 100. Its 59 companies on the list recorded the highest regional increase in market capitalisation of 57%, compared with China’s 42% and Europe’s 18%.

    Five European companies dropped out of the Global Top 100 in the year to March 2021, including three in the UK and two in France. That was partially offset by two new entrants to the list from Germany – Siemens and Volkswagen.

    The 73 companies on the list from the US and China account for 77% of the total market capitalisation of all Global Top 100 companies.

    Apple is the world’s largest company by market capitalisation

    Apple regained its crown as the world’s largest company by market capitalisation with a March 2021 valuation of 6% and 13% ahead of Saudi Aramco (2nd) and Microsoft (3rd), respectively.

    Apple’s market capitalisation reached an all-time high of USD 2.4 trillion in January 2021.

    Although Amazon’s market capitalisation increased by 61% in the year to March 2021, the company remained in fourth place.

    The top 10 is completed by Alphabet (Google), Facebook, Tencent, Tesla, Alibaba and Berkshire Hathaway.

    China Mobile was the only company in the Global Top 100 that saw a decrease in market capitalisation.

    Tesla recorded the highest increase, of 565%. Food delivery platform Meituan saw the second largest increase in market capitalisation in relative terms (221%).

    Volkswagen returned to the Global Top 100 with a USD 165 billion market capitalisation as at March 2021, with a 165% increase in the year to March 2021, driven by strong investor support and consumer demand for its transition to electric vehicles.

    Given the ongoing regulatory challenges and suppressed demand across the aviation industry due to the pandemic, Boeing made a surprise return to the list with a 77% increase in market capitalisation.

  • Top 5 tech billionaires worth $567B, more than 80 poorest countries combined

    Top 5 tech billionaires worth $567B, more than 80 poorest countries combined

    The combined net worth of the top 5 tech billionaires hit $567bn in February, more than the gross domestic product (GDP) of the 80 poorest countries combined, AksjeBloggen reports.

    According to the Forbes billionaire list, the COVID-19 has helped Amazon founder and CEO Jeff Bezos to grow his wealth by $74bn in the last year, with his net worth reaching $187bn this month.

    The International Monetary Fund data show this figure is closest to New Zealand and Iraq’s GDP, which ranked 52nd and 53rd globally with $193.5bn and $178.1bn, respectively.

    Amazon products have become one of the most demanded in the world during the pandemic, as it keeps providing tech items, groceries, and entertainment to people amid lockdown.

    Because of the high demand for its services, the company had to hire an additional 175,000 workers to keep up with surging demand.

    Bill Gates, the Microsoft founder, is the second wealthiest person in the US tech industry and globally. The net worth of the billionaire working with the WHO and drug makers to defeat the coronavirus is currently standing at $120bn.

    Statistics show Gates’ wealth grew by $22bn in the last year and is now closest to Morocco’s GDP, which ranked 59th globally.

    As the fifth-largest tech company globally, Facebook has also witnessed impressive growth in 2020. The Facebook shares rose by 26% in the last year, pushing its CEO’s fortune up by $39bn billion to $93.7bn.

    This figure means that Mark Zuckerberg’s wealth is $700 million above Puerto Rico’s GDP, which stands at $93.9bn.

    The chairman, chief technology officer, and co-founder of software giant Oracle, Larry Ellison, and co-founder of Google, Larry Page, ranked as the fourth and fifth tech billionaires globally, with $84.9bn and $80.4bn in net worth as of this month.

    Their wealth is the closest to Sri Lanka and Dominican Republic’s GDP, which ranked 66th and 67th globally, with $81.1bn and $77.8bn, respectively.

    Top 5 tech billionaires worth more than GDP of Sweden, Thailand or Belgium

    According to Forbes and International Monetary Fund data, the cumulative wealth of the top five tech billionaires also surpasses the GDP of several countries considered to be economic powerhouses.

    For example, their combined net worth is bigger than the GDP of Austria, Norway, or United Arab Emirates, which ranked 28th, 33rd, and 35th globally with $432.8bn, $366.3bn, and $353.9bn, respectively.

    Statistics show that the five tech billionaires’ wealth is the closest to Poland and Sweden’s GDP, as 23rd and 24th economies globally. The two countries’ gross domestic product stood at $580.9bn and $529bn in 2020.

  • Ad revenue tops $63 Billion for tech big three in Q3 2020

    Ad revenue tops $63 Billion for tech big three in Q3 2020

    According to their earnings reports, Google, Facebook and Youtube generated a cumulative $63.3 billion in ad revenue in Q3 2020. 

    Global ad spend surged during the quarter as well, increasing by 56.4% according to Social Bakers.

    Based on the research data analyzed and published by Comprar Acciones, Google’s total revenue for Q3 2020 was $46.2 billion while its ad revenue totaled $37.09 billion, up from $33.79 billion in Q3 2019.

    YouTube’s ad revenue was $5.04 billion, up from $3.80 billion in Q3 2019, an increase of 32%. According to Statista, YouTube’s ad revenue went from $4.72 billion in Q4 2019 to $4.04 billion in Q1 2020. It slumped further to $3.81 billion in Q2 2020.

    Facebook’s revenue for Q3 2020 was $21.5 billion, up by 22% year-over-year (YoY). From this amount, ad spend was $21.2 billion, nearly 99% of the total. It had increased from $17.4 billion in Q3 2019.

    In total, the three tech giants generated $63.3 billion in ad revenue in Q3 2020.

    On the other hand, for Amazon, its total revenue in Q3 2020 was $96.1 billion, up by 37% YoY. From this amount, ad revenue was $5.4 billion, up by 51% YoY.

    Comparatively, ad-driven Twitter, Snap and Pinterest raked in slightly less than $2 billion.

    According to a Zenith report, global ad expenditure will decline by 9% in 2020. However, in 2021, it will recover, posting a 5.8% gain thanks to the Tokyo Summer Olympics. Also, digital ads will contribute an estimated 51% to global ad spend in 2020 based on the report.

    Another study made by IAB states that digital ad spend will grow by 6% in 2020 while traditional ad spend will drop by 30%. Paid search will grow the fastest, at 26%, and social media ad spend will increase by 25%. Digital video will soar by 18% and digital display by 15%.

  • COVID-19 pandemic has reduced the market capitalisation of companies

    COVID-19 pandemic has reduced the market capitalisation of companies

    The market capitalisation of the 100 largest listed companies in the world declined by 15%, representing USD 3,9 trillion în Q1 2020, because of the COVID-19 pandemic, after an increase of 20% in March – December 2019, according to PwC’s Global Top 100 companies.

    The companies in the Oil & Gas sector were hit hardest.

    As a result of this evolution, between 31 March 2019 and 31 March 2020, for which the ranking is made, the market value of the 100 largest listed companies in the world reached USD 21.5 trillion, 2% up from the previous corresponding period.

    Energy and the financial sector, the biggest declines. At the opposite pole, utilities, technology and health

    In the first three months of 2020, all sectors declined. The most affected was oil and gas, down 37%, followed by finance by 23%.

    The smallest decreases were registered by the utilities companies, of 1%, technology, which lost 11% of the market capitalization, and by the consumer service companies, with minus 6%.

    The latter’s evolution was supported by the 16% (USD 23 billion) growth of Netflix, one of the ten companies whose market value increased during that period.

    Top 10 most valuable companies. Saudi Aramco ranks first

    Saudi Aramco joined the Global Top 100 this year having undertaken the largest IPO in history in December 2019. Saudi Aramco entered the list in first position and has retained this position ever since, with a market capitalisation at 31 March 2020 of USD 1,6 trillion.

    Saudi Aramco has thus surpassed last year’s leader, Microsoft, which is now on second place, followed by Apple.

    Even with the COVID-19 disruption, the market capitalization of Microsoft and Apple each exceeded USD 1 trillion as of March 2020. The performance of Amazon, placed on fourth place, was boosted by a surge in demand created by movement restrictions.

    The world’s top 10, made up mainly of technology and e-commerce companies, is completed by Alphabet, Alibaba, Facebook, Tencent, Berkshire and Johnson & Johnson.

    Even with the impact of COVID-19, Tesla was the biggest riser in the three months to March 2020, of 28%, at the opposite pole is Citigroup, with a decrease of 49%.

    The US continues to dominate at the regional level

    For the sixth consecutive year, the US ranks first, having more than half (57) of the companies in the top followed by Europe, with 21 companies, China and its regions, with 12 companies.

    By region, European companies in the global Top 100 experienced the most significant reduction in Q1 2020, by 25% (USD 956 billion).

    The market capitalization of American companies in the ranking decreased by 14% (USD 2.2 trillion), and that of Chinese companies by 11%. Brazil, Australia and South Africa no longer appear in the ranking, after the exit of Petrobras, BHP and Naspers.

    Unicorns value is growing

    Regarding the unicorns, the value of the Top 100 Unicorns grew by 5% to USD 853 billion as at 31 March 2020.

    The outlook for unicorns remains positive in the medium term. Some public companies have seen a surge in demand since COVID-19 took hold which has translated into valuation growth, particularly technology / technology enabled and health care businesses – sectors where unicorns are well represented.

    Similarly to the Global Top 100, the US dominates the Top 100 unicorns, representing half of the list in terms of number of companies and value, China ranks second with 26 companies and Europe is on third place, with ten companies, of which six from Great Britain and three from Germany.

  • Social media and augmented reality, a $13 billion industry

    Social media and augmented reality, a $13 billion industry

    • Augmented reality is changing the way we see the world. 
    • Businesses can use it to promote their brands of social media giants like Facebook and Snap. 
    • For example, Taco Bell just created a Snapchat filter that can turn your face into a taco. 
    • Brick and mortar retailers can use it to try out or “try on” products while browsing on social media platforms. 
    • For example, according to Forbes, a shopper may be able to virtually try on glasses and clothes without having to leave home. 

    By 2022, AR-based advertising could create a $13 billion industry. AR may even help increase impulse buys by making products harder to resist. Such catalysts for growth are creating sizable, exciting opportunity for top companies including NexTech AR Solutions, Alphabet Inc., Facebook Inc., Snap Inc. and Amazon.com Inc. 

    NexTech AR Solutions, the industry leader in augmented reality, announced that it launched its 3D/AR Ad Network which it believes can drive substantial revenue growth in 2020. 

    What makes 3D ads a game changer for the $240 billion online ad market is dramatically improved performance metrics.

    In recent testing, 3D ads outperformed traditional static ads dramatically- showing a 633% increase in sign-up conversions and a 376% increase in click-through rates (Sketchfab reference). 

    Facebook Inc. reported financial results for the quarter and full year ended December 31, 2019.“We had a good quarter and a strong end to the year as our community and business continue to grow,” said Mark Zuckerberg, Facebook founder and CEO. “We remain focused on building services that help people stay connected to those they care about.” 

    Facebook daily active users (DAUs) – DAUs were 1.66 billion on average for December 2019, an increase of 9% year-over-year; Facebook monthly active users (MAUs) – MAUs were 2.50 billion as of December 31, 2019, an increase of 8% year-over-year; Family daily active people (DAP) – DAP was 2.26 billion on average for December 2019, an increase of 11% year-over-year; Capital expenditures including principal payments on finance leases, were $4.24 billion and $15.65 billion for the fourth quarter and full year 2019, respectively. 

    Snap Inc. unveiled Duck Duck by Harmony Korine, an experimental short film shot using Spectacles 3 to explore storytelling in 3D. Released November 2019, Spectacles 3 are equipped with dual HD cameras to capture three-dimensional photos and videos, unlocking the ability to transform Snaps with 3D Effects.

    Best known for Kids, Spring Breakers and most recently, Beach Bum, cult filmmaker Harmony Korine experiments with Spectacles 3 as a cinematic tool, overlaying augmented reality onto three-dimensional scenes for immersive storytelling.

    Using Spectacles 3, Harmony Korine transforms Miami into an unbridled dreamscape of sound and color in Duck Duck — exploring the emerging disciplines of wearable cinema, augmented reality, and immersive, spontaneous storytelling. The film’s hybrid reality is brought to life through 3D Effects developed for the film, which will be available to Spectacles 3 users on Snapchat. 

    Amazon.com Inc. announced financial results for its fourth quarter ended December 31, 2019. Operating cash flow increased 25% to $38.5 billion for the trailing twelve months, compared with $30.7 billion for the trailing twelve months ended December 31, 2018.

    Free cash flow increased to $25.8 billion for the trailing twelve months, compared with $19.4 billion for the trailing twelve months ended December 31, 2018. Free cash flow less principal repayments of finance leases and financing obligations increased to $16.2 billion for the trailing twelve months, compared with $11.6 billion for the trailing twelve months ended December 31, 2018.

    Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $12.5 billion for the trailing twelve months, compared with $8.4 billion for the trailing twelve months ended December 31, 2018.