Despite not the best ending of 2018 for the Stock Market, Amazon is starting 2019 by climbing to the top. The company’s total market capitalization surged past both Apple and Microsoft and reached more than $805 billion or more than $1640 per share. With this, Amazon is now the largest US listed company by market capitalization, surpassing Microsoft, Google and Apple.
Since August and September of 2018 when the Stock Market reached its peak, the market experienced the wrath of the Bears. Most companies fell by 20% to 40%, Tech Giants falling the most. Before the Bear market Apple was the leader, the first to reach the $1 trillion mark and even reached $1.1 trillion in market cap. Since then Apple lost nearly $400 billion of its market capitalization, mainly fueled by the company not reaching its sales targets with the new series of iPhones.
Amazon reached $1 trillion in evaluation in September of 2018 and fell to $700 billion, losing 30% market capitalization. These numbers are mind-blowing, but the truth is that the majority of FAANG stocks, Facebook, Apple, Amazon, Netflix and Google’s parent company Aphabet, all underperformed after the peak. Even the Dow Jones Industrial Average (DOW) fell with 4034 or 15,6% from $25 826 to $21 792 in just three weeks.
Amazon is the largest US listed company at the moment
Facebook was without a doubt the worst performing company. Ever since the Cambrige Analytica scandal Facebook was in a free fall and this made 2018 the worst year in Facebook’s history. From 25th of July to Christmas, the company lost 43% falling from $217.5 per share to $124. Since then, Facebook’s stock has recovered a bit to $144 and its current market cap sits at $413 billion.
Many experts believe that the losses should have been even higher, especially when it was discovered that Facebook was selling private information to other corporations for solid profits. A report from Pivotal Research Group predicts that by the end of the year, we might see Amazon shares hit $1920. The equity research firm’s senior analyst Brian Weiser, stated that the stock could increase by over 20%, which would cause Amazon to reach again the record market cap of $1 trillion.
According to Weiser, the digital advertising sector is the biggest reason for this incredibly bold prediction. Weiser was also quick to note that even Amazon is not safe from upcoming regulations, a financial crisis and market competition. Apple was quick to take a jab at fellow competitors as it installed a very provocative advertisement in Las Vegas. The ad displays the rear camera of an iPhone with a quote stating, “What happens on your iPhone, stays on your iPhone.”
The ad also contained a link to Apple’s privacy policies. Another factors for the recent stock market crash is another thing that financial analysts are screaming from some time. Most financial gurus are predicting that a big financial crisis and a big debt crisis will happen at the end of this year and the whole 2020. This crisis is long overdue and a great opportunity for smart investments. After all the capital doesn’t disappear, but rather it moves around.
Cryptocurrency prices increased during the recent stock market crash, so in the events of a financial crisis cryptocurrencies can act as a hedging tool for a lot of investors, thus driving the prices up. During a financial crisis, real estate and the stock market are the biggest losing investment options, so i won’t be surprised if Crypto prices spike.
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