Pop Quiz: Which Tech Company Will Be First to $1 Trillion?
Some of the biggest names in the technology sector, including Facebook and Amazon, topped analyst estimates and reported solid earnings for the most recent quarter. As their shares continue to climb, many investors are beginning to wonder: Who will be the first to reach $1 trillion?
On this episode of Motley Fool Money,ChrisHill poses this same question to the team -- listen in, and place your bets.
A full transcript follows the video.
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This podcast was recorded on July 29, 2016.
Chris Hill: With the rise of Facebook and Amazon this week, both of those companies passed Berkshire Hathaway in terms of overall market cap. You throw in Apple and Alphabet, we have four of the largest public companies in the market. Which one gets to a valuation of $1 trillion first, or you can go off the board? You can take the field as they say in your favorite sport of golf. Jason, you can pick one of those four, you can take the field. What do you go with? Who gets to $1 trillion first?
Jason Moser: I'm going to go with the most useful to my mind of all of them. I feel like Amazon is the one that is by far and away the most useful on a regular basis. I mean, they garner more and more repeat purchases as time goes on. Bezos approaches this business with a sense of urgency every day, and it's not to say anything bad about these other CEOs. They're all great leaders, but I just think Amazon really has the clearest path to it.
Simon Erickson: Yeah, good point on visionary leadership, and they're all in tech space. I've got to go with Facebook, because I feel like they're just getting started. I mean, as big as this company is, consider 3% ad load and just the number of users they have that have come on this new platforms I feel like we're not even halfway there.
MattArgersinger: I've been on the Amazon bandwagon, and I don't think I'm getting off. I still think they're the first to get there, but I have to say when you look at Facebook, the growth, the 40% operating margins which Amazon could never get to. Facebook might get there first.
Hill: You're all wrong. I'm taking the field. You guys are betting on single companies, I've 10,000 I'm betting on.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools board of directors. Chris Hill owns shares of Amazon.com. Jason Moser owns shares of Apple. Matthew Argersinger owns shares of Amazon.com and Apple. Simon Erickson has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon.com, Apple, and Facebook. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.