Apple has been prevailing in the stock market, but this trend is changing. Although in the past, Apple was the largest company in the world, this is no longer the case since there are other competitors that are expanding at a faster rate and are more innovative. In the perspective of 2030, only three companies, Amazon, Alphabet, and Meta Platforms, are likely to outthink Apple in terms of market value, should patterns remain on trend.
The recent performance of Amazon is a testimony to its strength. Its revenue increased by more than 10% year-over-year, and profits increased at an even faster pace with high-margin units such as Amazon Web Services and advertising. Amazon is driving this momentum to innovate, for example, by increasing its presence with cloud and AI. Amazon is attracting the attention of investors not only because of its sales growth potential but also because of the speed of earnings growth, which is essential to a mature business.
Alphabet is an excellent growth and value stock. Apple stock is viewed as premium compared to the shares of Alphabet, whose stock is priced way below its earnings, even though Alphabet is increasing its revenue at a higher rate. Projections indicate that the revenue of Alphabet will increase to $518 billion in 2028 and is growing faster than that of Apple. This accelerated growth, combined with a more reasonable price-earnings ratio, sets Alphabet on a straightforward way to surpass Apple should current tendencies remain.
With a yearly investment in AI infrastructure to reach up to $65 billion, Meta Platforms is making high-stakes predictions about the role of AI. This huge impetus will increase the functionality of Meta and allow it to support more than a billion people with new products powered by AI.
The impact of such changes is evident. Weaker growth and the high valuation rate expose Apple to the risk of being overtaken by growing, more innovative competitors. Provided they continue to grow at the current rate, Amazon, Alphabet, and Meta may all surpass Apple by 2030, changing the order of the most valuable companies in the world.
