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Market Cap of the Big Five Companies Surged by 46% YTD to $7.1trn, Amazon Leads with an 80% Jump




Amazon, Apple, Microsoft, Others Hit $7.1 Trillion Market Cap

As opposed to the automotive industry, hotel chains, airlines, and millions of SMEs fighting to cope with the COVID-19 crisis, the world’s leading tech companies have been remarkably unaffected by the effects of the coronavirus outbreak.

Defying the state of the global economy, three out of the Big Five companies, including Apple, Microsoft, Amazon, Google, and Facebook, posted double-digit revenue growth for the nine months of the current year. All of them also witnessed an impressive market cap growth in 2020.

According to data presented by StockApps the combined market capitalization of the Big Five companies surged by 46% YTD to $7.1trn.

Amazon Market Cap Rose by $740bn YTD, the Biggest Increase in 2020

The COVID-19 caused one of the biggest surges in technology investment in history by forcing millions of people to work from home and shop online amid the pandemic. Moreover, it made investors flock to the tech sector, expecting tech companies to boom in an economy whose future arrived before the schedule.

In December 2019, the combined market capitalization of Apple, Microsoft, Amazon, Google, and Facebook amounted to over $4.9trn, revealed the Yahoo Finance data. After the stock market crash caused by the coronavirus outbreak, this figure dropped to $4.5trn in March.

However, the market cap of the Big Five companies recovered during the second quarter and hit over $6trn in June, a 24% jump in six months. Statistics show this figure increased by more than $1trn since then, reaching over $7.1trn at the end of last week.

The Yahoo Finance data showed Apple’s market cap jumped by 56% since the beginning of 2020. In December 2019, the combined value of stocks of the US tech giant stood at nearly $1.3trn. Since then, this figure increased by $730bn, reaching $2trn last week, and pushing the company far ahead of last year’s leader Microsoft.

Microsoft market cap jumped by 36% YTD, growing from over $1trn in December 2019 to $1.64trn last week. The company also reported $110.2bn in revenue in the first nine months of 2020, 13% more than the same period a year ago.

However, statistics indicate the US tech and eCommerce giant Amazon witnessed the most significant market cap increase in 2020, with the total value of its shares soaring by 80% YTD. In December 2019, Amazon market capitalization stood at around $920bn. Over the last eleven months, it jumped by almost $740bn, reaching $1.66trn last week. Statista data also revealed the company’s revenue in the nine months of 2020 hit $260.5bn, a 35% increase year-over-year.

Two More Companies Join the $1 Trillion Club

While Amazon’s success during the pandemic seems logical, considering millions of people who switched from brick-and-mortar stores to webshops, the relative immunity against the crisis shown by Google and Facebook is more of a surprise. Especially considering the two companies rely heavily on advertising spending, which dipped noticeably during the COVID-19 pandemic.

Alphabet market cap rose by 12% since the beginning of the year, growing from $921bn in December to over $1trn last week. The Statista data also showed the company’s revenue in the nine months of 2020 jumped by 9% YoY to $125.6bn.

The world’s most popular social network and the fifth-largest tech company globally, Facebook, has witnessed a 42% increase in market capitalization since the beginning of the year. The combined value of all Facebook stocks rose from $585bn in December 2019 to $835bn last week, while its revenue for the nine months of 2020 was up by 17% YoY to $57.9bn.

Besides Apple and Microsoft as the two largest tech companies by market capitalization, Amazon and Alphabet also joined the $1 trillion club this year, despite the COVID-19 crisis.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Stock Market

Insider Dealing: Chide Agbapu Buys 1 Million Shares in Fidelity Bank




The management of Fidelity Bank on Friday said Mr. Chidi Agbapu, a non-executive director, bought 1,000,000 shares of Fidelity Bank Plc.

In line with the Nigerian Stock Exchange (NSE) disclosure policy, the lender said Agbapu purchased the shares in two different transactions on November 9, 2020.

According to a statement signed by Ezinwa Unuigboje, Company Secretary, Fidelity Bank, the shares were purchase in two deals of 500,000 units each at N2.75 per share. See the details below.

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Stock Market

Nestle S.A. Gradually Taking Over Nestle Nigeria, Increases Stake Yet Again




Nestle S.A. has once again increased stake in Nestle Nigeria in a move that scream absolute takeover or confidence in the future of Nestle Nigeria Plc.

In the latest statement forwarded to the Nigeria’s Stock Exchange, Nestle Nigeria Plc said Nestle S.A. purchased 102,690 shares of Nestle Nigeria Plc.

The shares were acquired at N1,400 per share on November 20, 2020 at Nigerian Stock Exchange (NSE) in Lagos, Nigeria.

This is Nestle S.A.’s second purchase this month following 229,697 shares of Nestle Nigeria Plc acquired on November 9th, 2020 in Lagos, Nigeria.

Nestle S.A. has invested more than N1 billion in Nestle Nigeria Plc this year alone, forcing investors to think a gradual takeover or change of leadership is around the corner.


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Stock Market

Zenith Bank Led Most Traded Stocks After Strong Third Quarter Financial Results



Nigerian Stock Exchange

Investors traded 79.741 million Zenith Bank’s share valued at N1.913 billion on Monday following a strong positive third-quarter report released on Friday.

The leading financial institution posted N508.979 billion gross earnings in the nine months ended September 30, 2020. The highest among banks that have so far released their unaudited financial statements.

Investors traded 568.037 million shares worth N7.326 billion in 8,928 transactions during the trading hours of Monday.

The Nigerian Stock Exchange Market Capitalisation declined by N9 billion from N17.838 trillion to N17.829 trillion. While NSE All-Share Index depreciated by 0.04 percent to 34,121.78 index points.

Airtel Africa led top gainers with N25 or 5 percent to close at N525 per share. Nestle trailed Airtel with N25 or 1.82 percent to settle at N1400 per share.

Dangote Cement, BUA Cement and NEM followed with N6.6 or 3.42 percent; N2.55 or 4.77 percent and N0.02 or 0.78 percent to finish the day at N199.8 per share; N56 per share and N2.6 per share, respectively. See the details below.

Top Traded Stocks

Symbols Volume Value
ZENITHBANK 79,740,780 N1,912,937,383.60
FBNH 72,749,297 N499,576,761.15
ACCESS 65,741,063 N520,344,059.70
UBA 46,968,616 N360,036,464.00
GUARANTY 37,096,752 N1,266,010,624.80

Top Gainers 

Symbols Last Close Current Change %Change
AIRTELAFRI N500 N525 25 5.00%
NESTLE N1375 N1400 25 1.82%
DANGCEM N193.2 N199.8 6.6 3.42%
BUACEMENT N53.45 N56 2.55 4.77%
NEM N2.58 N2.6 0.02 0.78%

Top Losers 

Symbols Last Close Current Change %Change
STANBIC N43 N39.55 -3.45 -8.02%
WAPCO N24.5 N22.05 -2.45 -10.00%
FLOURMILL N27.75 N25.4 -2.35 -8.47%
GUINNESS N19.9 N18 -1.9 -9.55%
ARDOVA N15 N13.5 -1.5 -10.00%

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