The explosive growth of the stock market, the year 2019, (the S&P has risen more than 27 percent) is shaping up to be one of the best years to invest in recent history, a boost for the leading tech giants who have seen their market caps grow rapidly. In 2019, the leading tech giants were seen to have significant impacts and their market caps were also seen to grow rapidly. Meanwhile, in terms of profit, growth and influence, tech companies annihilated the country’s largest pharmaceutical, chemical, and consumer good companies.
According to a CNBC analysis, if the S&P index at the end of the year exceeds 500, this means the best returns will be achieved in the next six years. In the meantime, if it passes 31 percent, this means that in a period of 22 years there will be the best returns.
For tech giants however, 2019 is a boon, whereas for many firms it’s a bane.
Apple is this year’s leading company that increased its market value. It rose by $497 billion to almost $1.25 trillion, and in the second half of this year its stocks reached the new record peak. Apple’s product sales and foray into the streaming wars have gained a great deal.
Despite increased regulatory scrutiny on the horizon, it managed to gain more revenue by adding new users to its main site and apps such as Instagram and WhatsApp. Since the beginning of 2019, it has earned $213 billion in market value, for a total of $587 billion.
As a result of strong growth in its cloud computing (Amazon Web Services) and advertising companies, its market value grew by nearly $150 billion this year to a total of $887 billion.
However major Non IT companies still looking for their hopes high in 2020 as, the previous year was barely successful.
DuPont, formerly the biggest pharmaceutical company in the world, sold off several companies throughout the year, including Dow’s consumer chemical division and Corteva’s agricultural arm, which cut the market cap in April by more than half. Over the course of the year, the market value dropped nearly $34 billion, down to a total of $47.5 billion.
In 2019, Pfizer’s market value dropped just over $33 billion — to $218 billion. This is due to declining sales and the merger of its Upjohn Division of Generic Drugs with Mylan earlier in the year, resulting in a negative reaction from Wall Street analysts.
Kraft Heinz, one of this company’s creditors is the billionaire Warren Buffet, where he owns 27% of the shares. His stock fell to 30% in February this year due to a decline of more than $15 billion in the market value of its leading brands, Kraft and Oscar Mayer. Before the end of this year, the company has not recovered and its market value has lost $13.5 billion.
Walgreens Boots Alliance This year, due to competition from online retailers, this international drug store faced a major challenge. This prompted the company to cut costs and somehow pursue a private company’s huge leveraged buyout. A market cap has fallen from $13.1 billion to $52 billion before the end of the year.
Even though the lost amount is too high, the companies need to be hopeful for the year 2020. The success can knock the door anytime, striving for survival companies are looking forward for the blessed 2020.
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