Largest public companies by market capitalization (2000-2022)
The 10 largest public companies in the world had a combined market capitalization of nearly 12 trillion dollars since July 2022.
But two decades ago, the players that made up the list of largest companies by market capitalization were dramatically different โ โโand over the years, emerging megatrends and market sentiment have worked to reshuffle the cards time and time again.
This running bar chart by Truman of shows how the ranking of the 10 largest public companies has evolved from 2000 to 2022.
Market Cap vs Market Value
Before we dive in, it’s worth noting that market capitalization is just one of many metrics that can be used to help value a company.
Simply put, a company’s market capitalization measures the combined price of a company’s outstanding shares – in other words, it’s the price someone would pay if they wanted to buy the company at the current price. current stock (theoretically speaking).
But while a market capitalization gives insight into the value of stocks at any given time, calculating market value is much more complicated and nuanced. After all, a price paid may not reflect the true value of a business. To get a measure of value, other metrics such as the price-to-sales (P/S) ratio, the price-to-earnings (P/E) ratio, or the return on equity (ROE) of a company can be taken into account.
Largest public companies by market capitalization (2000-2022)
Over the past two decades, investor sentiment has changed as different trends have emerged, and the types of companies supported by the market have also changed.
For example, technology and telecommunications companies were big in the very early 2000s, when investors were excited about the seemingly endless potential of the new World Wide Web.
Largest companies by market capitalization (January 1, 2000)
Rank | Company | Market capitalization (January 1, 2000) |
---|---|---|
#1 | ๐บ๐ธMicrosoft | $606 billion |
#2 | ๐บ๐ธ General Electric | $508 billion |
#3 | ๐ฏ๐ต NTT Docomo | $367 billion |
#4 | ๐บ๐ธ Cisco | $352 billion |
#5 | ๐บ๐ธ Walmart | $302 billion |
#6 | ๐บ๐ธ Intel | $280 billion |
#seven | ๐ฏ๐ต Japanese Telegraph | $271 billion |
#8 | ๐ฌ๐ฎNokia | $219 billion |
#9 | ๐บ๐ธ Pfizer | $206 billion |
#ten | ๐ฉ๐ช Deutsche Telekom | $197 billion |
Amid the Dotcom bubble, investors were pumping money into internet-related tech startups. As PC and Internet adoption grew, investors hoped to “get in early” before these companies started making real profits. This feeling of overzealousness is reflected in the market capitalizations of public companies at the time, especially in technology or telecommunications companies that were considered to benefit from the Internet boom.
Of course, the Dotcom bubble was not meant to last, and by January 2004 the top 10 list was much more diverse. At that time, Microsoft had lost the top spot to General Electric, which had a market capitalization of $309 billion. Then, in the late 2000s, energy companies such as ExxonMobil, PetroChina, Gazprom and BP took over the list as oil prices soared to over $100 a barrel.
But fast forward to 2022, and we’ve come full circle, with Big Tech back in the spotlight.
Largest companies by market capitalization (July 1, 2022)
Rank | Company | Market capitalization (July 1, 2022) |
---|---|---|
#1 | ๐ธ๐ฆ Saudi Aramco | $2.27 billion |
#2 | ๐บ๐ธ Apple | $2.25 trillion |
#3 | ๐บ๐ธMicrosoft | $1.94 trillion |
#4 | ๐บ๐ธAlphabet | $1.43 trillion |
#5 | ๐บ๐ธ Amazon | $1.11 trillion |
#6 | ๐บ๐ธ Tesla | $707 billion |
#seven | ๐บ๐ธ Berkshire Hathaway | $612 billion |
#8 | ๐บ๐ธ United Health Group | $485 billion |
#9 | ๐บ๐ธ Johnson & Johnson | $472 billion |
#ten | ๐จ๐ณ Tencent | $435 billion |
Four of the top five companies are in technology, and Tencent also cracks the list. Meanwhile, Tesla is classified as an automotive company, but it is considered an โinternet of carsโ company by many investors.
General trends in the Top 10 by market capitalization list
Year | The description | Best Company (USD Market Cap) | Top 10 descriptions |
---|---|---|---|
2000 | internet bubble | Microsoft ($606 billion) | Several tech/telecom companies in the mix |
2004 | Post-bubble | GE ($309 billion) | Diverse mix of companies by industry |
2009 | Financial crisis | PetroChina ($367 billion) | Six non-US companies are on the list |
2014 | $100 Oil | Apple ($560 billion) | Last year on oil-dominated list; technology begins to rise |
2022 | great technological era | Aramco ($2.27 trillion)* | Technology accounts for 80% of Top 5 companies |
*As of July 1, 2022. Since then, Saudi Aramco has been overtaken by Apple again due to a reversal in oil prices.
Downward trend ?
Amid rising interest rates, crippling inflation and political issues like the ongoing conflict in Ukraine, signs point to a potential global recession. Tech companies have done well during the COVID-19 pandemic, but are unlikely to be immune to the impacts of a widespread economic downturn.
It will be interesting to see how things play out in 2023 and which companies (if any) manage to stay on top throughout the turmoil.
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