The U.S. Senate is sometimes called “the most exclusive club.” Yet I know of a club far more exclusive than the 100-member legislature: the $3 trillion club.
Only three companies in the world can boast a market capitalization of $3 trillion or more: Apple, MicrosoftAnd Nvidia. But that club could become a little less exclusive in the not-too-distant future. Here are three must-have stocks that could join Apple, Microsoft, and Nvidia in the $3 trillion club.
1. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Alphabet is in a strong position to become the next $3 trillion company. Google’s parent company currently has a market cap of around $2.3 trillion. At the rate the stock is going, it’s not out of the question that Alphabet could join Apple, Microsoft and Nvidia by early 2025.
The bulk of Alphabet’s revenue and profits continue to be generated by its Google Search business. While some have predicted that the rise of generative AI poses an existential threat to search engines, Google has thrived. CEO Sundar Pichai noted during Alphabet’s first-quarter earnings call that Google’s new AI capabilities have increased search usage and user satisfaction with search results.
Google Cloud is expected to see strong support from AI in the coming years. The unit’s sales jumped 28% year over year in the first quarter, with operating income up 371%. Google Cloud is particularly popular with generative AI startups, more than 60% of which use its cloud service.
YouTube is another key growth driver for the company. It is the streaming leader in the United States, with more than a billion hours of content viewed daily. YouTube now has more than 100 million subscribers across music and premium services, while YouTube TV claims more than 8 million paying subscribers.
2. Amazon
Amazon (NASDAQ: AMZN) is not far behind Alphabet, with a market cap hovering around $2 trillion. I expect the e-commerce and cloud services giant to also take its place in the $3 trillion club within the next two to three years.
Like Google Cloud, Amazon Web Services (AWS) is expected to see strong growth in the coming years driven by demand for building and deploying AI models. AWS is the market leader in cloud services. I expect it will remain at the top due to the appeal of new products such as the AI-powered Q software development assistant.
Amazon dominates the e-commerce market. Cost improvements in the company’s e-commerce platform and fulfillment network have helped boost its profitability. As Amazon further increases delivery speed, its e-commerce revenue and profits are expected to increase as customers shop online more frequently.
Advertising is also a major growth driver for Amazon. In the first quarter, ad sales increased 24% year over year on a constant currency basis. This growth could accelerate in the future as advertising on Prime Video gains momentum.
3. Meta-platforms
Meta-platforms (NASDAQ:META) Meta has a steeper climb to join the $3 trillion club. The social media leader’s market cap of $1.3 trillion is well below that of Alphabet and Amazon. However, I believe it’s only a matter of time before Meta reaches the $3 trillion mark.
The company is an advertising giant. Its apps, including Facebook, Instagram, Messenger, and WhatsApp, reach more than 3.2 billion people worldwide every day. Advertisers can’t ignore such a massive audience.
Meta’s efforts to more effectively monetize its products, including Reels, are paying off. Profit more than doubled year over year in the first quarter. The company continues to get better at showing ads to the right person at the right time.
Artificial intelligence represents a major growth opportunity for Meta, with CEO Mark Zuckerberg predicting that AI-powered business messaging will be the “next major pillar” of the company’s business.
Should we buy these future members of the $3 trillion club?
You might think that Alphabet, Amazon, and Meta are safe bets to buy if they are truly on track to join the $3 trillion club. And you would be right, in my opinion.
All three stocks have huge growth prospects. The growth drivers already mentioned don’t even tell the whole story. For example, robotaxis could represent huge opportunities for Alphabet’s Waymo and Amazon’s Zoox. Meta could be a bigger winner in virtual reality and the metaverse. I think Alphabet, Amazon, and Meta are great stocks to buy and hold.
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Randi Zuckerberg, former head of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights holds positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
3 Unstoppable Stocks That Could Join Apple, Microsoft, and Nvidia in the $3 Trillion Club was originally published by The Motley Fool