Tech Big 5 Combined Will Have Trillion Dollar Revenue in 2020

Apple, Amazon, Microsoft, Alphabet and Facebook had combined 2019 revenue of $899 billion and should have over $1 trillion in revenue in 2020. Most of the revenue gains will be from Amazon. Amazon has a 40% increase over its 2019 revenue. Amazon should have $320-350 billion in 2020 revenue. This would be about $80-100 billion in revenue increase. Apple will also have increased revenues. Apple has become the most valuable company in world and could surpass $2 trillion in market value. The big 5 could hit $7.5 to 8 trillion in combined market value in 2020.

Apple is trading at a market valuation of 1.90 trillion. Saudi Aramco is the number two global public company at $1.76 trillion. Apple is worth more than Shell Oil (115 billion) and Saudi Aramco combined. Apple is almost worth as much as Saudi Aramco and Chevron ($157 billion) combined.

BP (British Petroleum) is worth $73 billion.
Exxon Mobil is worth $177 billion.
China Petroleum is worth $66 billion.

Amazon is at $1.57 trillion. Microsoft is at $1.62 trillion.

Apple was 10% lower just two weeks ago.

Apple and the other big technology companies were 30% lower in February, 2020. Apple was at $1.42 trillion in market value and Microsoft was at $1.4 trillion.

Sources: Google Finance, Visual Capitalist
Written By Brian Wang, (Brian has index funds and tech shares and some apple shares)

16 thoughts on “Tech Big 5 Combined Will Have Trillion Dollar Revenue in 2020”

  1. Ordered a book from the web in 1999 and thought, gee, I should buy a lot of stock in this Amazon thing. Alas, it was an expensive time for me and I put the thought aside.

    2016, sold my house after I got married and moved into her place. Put almost all the proceeds from the sale, equity and earnings, into Amazon (the rest into Google and Rockwell Automation) later that year.

    Wow. It’s never too late to start. (still wistful over 1999, though.)

  2. When you have billions, you can buy the senior levels of the political class with campaign contributions so said class can be encouraged to provide general low corporate taxes and lots of loopholes. You can also fund think-tanks and influencers who push opinion pieces that lower corporate taxes are better overall for society.

  3. I’m afraid I can’t talk about the corporate tax rates in the USA, not my field at all.

    Though google gives me graphs that indicate it isn’t a particularly low rate at all on the world stage.
    This article

    For example.

    Note that article is actually talking about India, but gives the USA as one of the examples along with 2019 figures.

  4. The Dow Jones is based on an industrial average, and not on the combined economic output of all companies big and small. There’s the disconnect. The DIJA is a good barometer for some things and bad for others.

  5. I would say that, on a percentage basis, they are obligated to pay a lot less than I. So, a little different, yes.

  6. The market moves are based on the performance of each component stock, they inturn move based based on their underlying companies. Their movements are not related to the aggregate that is “the economy”.

  7. ahhh. But didn’t the current ‘regime’ put in place corporate tax cuts the likes of which are the lowest in decades, way low compared to other G7 countries? I am all for an environment of wealth, opportunity, and reduced regulatory expense to allow our most productive entities (corporations) to continue to dazzle us with jobs, wealth-creation, creative and ubiquitous products and services, and little (and not so little) eco-systems of innovation and technology— but, there comes a certain point where they are just looting the surrounding infrastructure that has provided them the utilities and other public services which sustain them – especially when they play-off more desperate regions, who want the factory/lab, against each other. Just saying that the mechanism for finding that ‘sweet spot’ of ‘corporate luring incentives’, overall tax breaks, and necessary minimum govt transfers just to keep the ‘not-profitable’ parts of the nation’s infrastructure going, is fuzzy. I suppose the best way is to assess the overall tax burden – methinks its corporate + payroll + sales taxes (though sales tax, i assume is just flow-thru — but if they are increasing sales through marvellous products – all win) to determine ‘fairness’ of current situation.

  8. You are right that this net effect on tech companies is extremely difficult to predict. Our best source of data is… what their income is this year. So far it looks up.

  9. Tax is paid in many forms.
    A big chunk of that $trillion has associated sales and value added taxes with it, so somewhere between 5 and 15%, which flows directly into government coffers.

    Of the remainder, it is taxed as profit, not revenue, so it has to have costs removed from the numbers.

    Those costs are things like wages (taxed), salaries (taxed) and actual expenditure on parts and services, all of which go to some other company’s books and their own tax arrangements.
    Finally you’re left with a core of profits, which, admittedly, is a big chunk of change for these boys.

    I’ll guess on the order of $100 billion a year, which is more money than I make in TWO years.

    What happens to this money? Well a chunk of it is paid to shareholders, who, if they are individuals have to pay tax on that. Often twice depending on the local laws (taxed as profit in the company, then taxed again when distributed to the company owners).

    Of course many shareholders are tax exempt. Such as your retirement account.

    And then there is a sizable chunk that is not declared as income, not distributed to owners, but somehow sneaks into the corporate funding where senior executives (and the actual founder/bosses) get to play with it and convert it into status and fun for themselves. But actually counting that required value judgements about what is and is not “legitimate” corporate expenses so everyone will come up with a different number.

  10. Hard to quantify. Is the likely ‘smaller pie of spending’ from reduced personal income/govt transfer actually yielding a larger absolute value from the bigger pie slice going on-line (and has that resulted in proportionately smaller tax obligations overall)? I think that we are all overall losers in the final assessment.

  11. There has been a huge drop in personal spending, but there has also been a huge transfer in spending from many traditional suppliers (bars, restaurants, public entertainment, even normal shopping) and redirected towards on-line spending (Amazon, Google, Youtube, Apple, Facebook, etc.)

  12. Right. That’s what the Congressional Hearing should have been about – not stifling competition and privacy, but pulling their weight from a tax liability and responsible corporate-citizen point of view.

  13. which is amazing since there has been so much personal spending destruction in the last 2 quarters. Many of these businesses have only limited B-2-B (business only relationships) client base. The christmas season will be interesting with personal income being vastly reduced, mortgage forbearance and tenant eviction protections ending, and debt levels skyrocketing. Ride the over-the-moon valuations of these companies until September; but be forewarned: negative election results, late 3Q revenue results, and payroll slashing pre-2021 will likely cause a revenue, earnings, and market cap ‘reckoning’ in the stock market per late Fall 2018. Or maybe the Robin Hood-ers will end up just shorting, optioning, and over-extending themselves into insolvency and take the big indices with them. May We Live in Interesting Times.

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