It’s no secret that the value of tech giants has skyrocketed in recent years, but the scale can be difficult to grasp.
With far-reaching market penetration, intelligent diversification and the conversion of products into services, Apple, Microsoft, Amazon and Google have market capitalizations well over. reached $ 1.5 trillion.
To help us better understand these astounding numbers, a recent study by Mackeeper compared the market capitalizations of several tech giants to the countries’ annual gross domestic product (GDP).
Editor’s note: While it’s interesting to compare these numbers, it’s worth noting that they represent different things. Market capitalization is the total value of shares outstanding in a publicly traded company and gives an indication of its overall valuation, and GDP measures the value of all the goods and services a country produces in an entire year.
Companies vs. Countries: Tech Giants
If Apple’s market cap was equal to a country’s annual GDP, it could just be the G7.
With a market capitalization of more than $ 2.1 trillion, Apple’s market capitalization is more than 96% of the country’s GDP, a list that includes Italy, Brazil, Canada, and Russia.
In fact, only seven countries in the world have a higher GDP than Apple’s market cap.
Further behind is Microsoft, which would be the 10th richest country in the world if its market capitalization equals GDP.
With a market capitalization of more than $ 1.9 trillion, Microsoft is worth greater than the GDP of global corporations Brazil, Canada, Russia and South Korea.
While all of the tech giants did well during the COVID-19 pandemic, perhaps none benefited as much as Amazon.
With both online retail and web services in high demand, Amazon’s market cap is up $ 1.7 trillion, more than 92% of the country’s GDP.
Other companies âbiggerâ than countries
Tech giants aren’t the only companies competing with countries.
|Country / Company||Nominal GDP (country) or market capitalization (company)|
|United States of America||$ 21,433 Billion|
|China||$ 14,343 Billion|
|Japan||$ 5.082 billion|
|Germany||$ 3,861 billion|
|India||$ 2,869 billion|
|United Kingdom||$ 2.829 billion|
|France||$ 2,716 billion|
|Apple||$ 2.125 billion|
|Italy||$ 2,004 billion|
|Microsoft||$ 1,942 billion|
|Saudi Aramco||$ 1,888 billion|
|Brazil||$ 1,840 billion|
|Canada||$ 1,736 billion|
|Russia||$ 1,700 billion|
|Amazon||$ 1,688 billion|
|alphabet||$ 1,656 billion|
|South Korea||$ 1,647 billion|
|Australia||$ 1,397 billion|
|Spain||$ 1,393 billion|
|Mexico||$ 1,269 billion|
|Indonesia||$ 1,119 billion|
|$ 939 billion|
|Netherlands||$ 907 billion|
|Saudi Arabia||$ 793 Billion|
|Turkey||$ 761 Billion|
|Tencent||$ 736 billion|
|Switzerland||$ 703 Billion|
|Poland||$ 596 billion|
Market capitalization data as of June 13, 2021
Also on the list is Saudi Arabia’s state-owned company Saudi Aramco, which has a market capitalization of more than double the GDP of its home country.
China’s tech giant Tencent also has a market capitalization that exceeds GDP in many countries, such as Switzerland and Poland.
Until recently, Tencent was also ahead of other tech giant Facebook in market cap, but the social network has climbed to the top, hitting nearly $ 1 trillion in market cap.
Of course, the biggest caveat with these comparisons is the difference between market capitalization and GDP numbers.
A company’s market capitalization is an indicator of its net worth in the eyes of public markets and is constantly changing, while GDP measures a country’s economic performance in a given year.
But companies have a direct and indirect impact on the economies of countries around the world. Given the international reach, wealth accumulation, and impact, it’s important to consider how much wealth and power these companies have.