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.
SPACs Losing Momentum as Investors Shy Away, Says GlobalData
- Special purpose acquisition company (SPAC) initial public offerings (IPOs) from Jan to Apr 2021 exceeded $87bn*
- Valuations may rise, with many SPACs looking for targets in similar spaces
- Key attractions include technology, media and telecoms (TMT); pharma; and sustainability
US stock exchanges saw a total of 301 SPAC IPOs priced, raising $87.6bn in the first 15 weeks of 2021, according to GlobalData, a leading data and analytics company.
SPAC IPOs set a new record in the first 12 weeks of the current year, having accounted for 77% of the total listings and 66% of the total capital raised. However, the so-termed ‘SPACulation’ seems to be fading away, evidenced by the sudden drop in capital raised by such IPOs from $11.5bn in week 13 to $0.7bn in week 15.
Keshav Kumar Jha, Business Fundamental Analyst at GlobalData, comments: “The slowdown in SPAC IPOs is the result of many factors, including increasing interest rates due to the revival in economic activity and optimism surrounding economic recovery in 2021, which could provide an opportunity for investors to consider investments with lower risk. SPACs typically bring risky propositions to investors’ portfolios as the capital raised is used for acquiring and merging with a private company and taking the company public, usually within 24 months.”
SPACs were the preferred tool to raise capital as traditional-IPO could not account for even one-third of total listing on both NASDAQ and NYSE in 2021 so far.
SPAC is a quicker and more economical way to go public. A company that intends to go public in the US could easily do so the SPAC way. This has attracted investors ranging from institutional investors and hedge-fund billionaires to Hollywood actors and private investors. Michael Dell raised $500m via MSD Acquisition Corp and Sir Richard Branson raised $350m via Virgin Group Acquisition Corp II.
Jha continues: “A number of SPACs with deep pockets are targeting similar companies that could inflate valuations and force them to raise money through other routes to fund their acquisition. However, failure to secure a merger within two years would require SPACs to return the money to investors.”
Apart from the sudden drop in SPAC listing, the performance of these stocks also remained lacklustre. Among the 301 SPACs listed in 2021 so far, only 1% were trading above 10% of their listing price and 16% were trading below the listing price as of April 9, 2021.
Jha adds: “SPACs could find it increasingly difficult to attract investors due to regulators’ actions to prevent SPACs from disseminating misleading information. The Securities and Exchange Commission (SEC) recently indicated that it would conduct traditional IPO-like scrutiny for SPACs to restrict them from providing overstated and misleading information to investors.”
GTBank Approves N79.464 billion Final Dividend for 2020 Financial Year
Shareholders of Guaranty Trust Bank Plc, a leading financial institution in Nigeria, have approved the payment of N79,464,186,000 as the final dividend from the N201.4 billion profit after tax recorded for the financial year ended December 31, 2020.
At the bank’s thirty-first Annual General Meeting held on Friday, April 9, 2021 at the Oriental Hotel in Victoria Island in Lagos, shareholders received and passed final dividend of N2.70k per 50 ordinary share for the 2020 financial year. Bringing the total dividend paid to shareholders for the 2020 financial year to N3.00k per ordinary share of 50 kobo each.
In the year under review, the leading financial institution realised N253.668 billion net interest income in the year under review, up from N231.363 billion achieved in 2019.
Commenting on 2020 financial year, Segun Agbaje, the Managing Director and Chief Executive Officer, GTBank, said “2020 was arguably the most challenging year that the world has faced in decades. In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.”
“We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”
Jaiz Bank Proposes N0.03k as Final Dividend in 2020
Jaiz Bank Plc, a non-interest bank operating under Islamic banking principles in Nigeria, has proposed N0.03k per 50k ordinary share for the financial year ended December 31, 2020.
The amount is subject to appropriate withholding tax and approval will be paid to shareholders whose names appear in the Register of Members as at the close of business on June 10, 2021.
Jaiz Bank said the Register of Shareholders will be closed from Friday June 11, 2021 to Friday June 18, 2021.
It said the qualification date is June 10, 2021 but the payment date will be announced later.
However, shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation For, from the company’s Registrar’s website at https://africaprudential.com/forms-offers/, complete and submit to the Registrar or their respective Banks.
Finance2 weeks ago
List of Microfinance Banks’ USSD Codes In Nigeria
Government4 weeks ago
FEC Approves $1.5 Billion For Repair of Port Harcourt Refinery
Cryptocurrency4 weeks ago
Zugacoin that Plunges Over 99 Percent in 6 Days Partners Innoson, Buy Innoson Products With Zugacoin
News4 weeks ago
Focus on bank MDs, Others, Workers Reply EFCC Over Asset Declaration
Government3 weeks ago
US Intelligence Says ISIS and Al-Qaeda Are Planning to Attack Southern Nigeria
Government4 weeks ago
Customers TO Pay N6.98 Per USSD Transaction – CBN, NCC
News4 weeks ago
EFCC Directs Bankers to Declare Assets by June 1
Banking Sector3 weeks ago
GTBank Records N201.4 Billion Profit After Tax in 2020