Apple, Amazon, Microsoft and Alphabet have traveled similar paths on the road to $1 trillion

by coolcomfort123

www.cnbc.com/2020/01/31/apple-amazon-microsoft-and-alphabet-and-the-road-to-1-trillion.html

There’s a familiar theme to each of the four $1 trillion technology giants.

Apple, Amazon, Microsoft and Google-parent Alphabet have all looked to services and cloud businesses for growth in the past couple of years.

These four tech companies are dwarfing the rest of the stock market, too, making up 17% of the S&P 500’s total market value.

 

Sorry, gonna have to disagree with the article.

main driver of growth for AMZN, MSFT was cloud – agreed. Both of their paths to $1 Trillion came from AWS and Azure, respectively.

However, GOOGL’s main source of revenue has always been ads. Google Cloud Platform (GCP), while growing, is NOT the main driver of their growth – GCP is a small % of Google’s revenues (source: qz.com/1675133/alphabet-q2-2019-earnings-show-non-google-revenue-lags/ ). GOOGL’s path to $1 Trillion came from ads, ads, and more ads.

AAPL is well diversified – its growth comes from iPhone, Services, Mac, and Wearables, in that order. iCloud is just a small part of Apple’s services, which in turn is 19% of AAPL’s revenues, and thus, not a main driver of growth. AAPL’s path to $1 Trillion came from 10 years of iPhone and Mac sales.