Big Tech is Bigger Than You Thought 💻
Big Tech is bigger than you thought
U.S tech stocks are now worth more than the entire European stock market. Yes, you read that right. By market cap, the U.S technology sector is now more valuable than the entire European stock market, according to Bank of Amerca Global Research. In contrast, Europe’s stock market was four times the size of the U.S tech sector back in 2007.
Including the United Kingdom and Switzerland, the European stock market is currently valued at $8.9 trillion. On the other hand, the U.S tech sector hit all-time highs with its market cap breaching a total of $9.1 trillion.
To be clear, this does not mean that the companies within the U.S tech sector are necessarily better companies. This data is measured by market capitalization or “market cap”. Market capitalization is the total dollar value of all outstanding shares of a company.
Tech behemoth Apple Inc has a market cap of more than $2 trillion alone. Amazon stock rose more than 20 times since 2010. Facebook stock has risen more than 500% since its Initial Public Offering (IPO) in 2012 and Microsoft’s current share price gives it a total market value of $1.73 trillion based on Friday’s market close.
The U.S tech sector is more valuable now than it has ever been. The technology sector has reshaped the way we interact with the world on every level and that is not something that can be measured with dollar signs. Maybe that’s what makes these tech companies so hard to value after all…
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.