Top 5 companies by market capitalization in the US

In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the top 5 companies by market capitalization in the US.

Introduction to market capitalization

Market capitalization, often referred to as “market cap,” is a key metric used in the financial world to assess the size and value of a publicly traded company. Market capitalization provides insights into a company’s position in the market and its relative size compared to other companies. It is a measure of a company’s total market value, calculated by multiplying its current stock price by the total number of outstanding shares.

Market capitalization is an important indicator for investors, analysts, and market participants as it reflects the perceived worth of a company by the investing public. Note that market capitalization assesses the size of the company in the equity market, but the total value of the company measured by its assets or the sum of its liabilities and shareholders’ equity may larger if the company uses debt (financial leverage).

The top 5 corporations in the US market according to market capitalization by 2023 are as follows:

1) Apple Inc.
2) Microsoft Corporation
3) Amazon.com, Inc.
4) Alphabet Inc. (formerly Google)
5) Meta Platforms Inc. (formerly Facebook Inc.)

By looking at these top 5 companies, we observe that these companies mainly belong to the technology sector.

We detail below the characteristics of each company: statistics, analysis of revenues, and stock market data.

#1 Apple Inc.

Logo of Apple Inc.

Source: the company.

Statistics (2023)

Market capitalization: $2,514 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Consumer Electronics)
Location of headquarters: Cupertino, California, United States
Year founded: 1976
Number of employees: 164,000

Revenues

Apple is a multinational technology company that designs, manufactures, and sells consumer electronics, software, and online services. It is best known for its iconic products such as the iPhone, iPad, Mac, and Apple Watch. The company has a strong ecosystem of hardware, software, and services, including the App Store, Apple Music, iCloud, and Apple Pay. Apple has a reputation for innovation and user-friendly designs, and it has a loyal customer base worldwide.

Stock chart

Stock chart for Apple Inc.

Source: Yahoo! Finance.

The historical data for Apple stock prices can be downloaded from Yahoo! Finance website: Download the data for Apple

#2 Microsoft Corporation

Logo of Microsoft Corporation

Source: the company.

Statistics (2023)

Market capitalization: $2,066 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Software)
Location of headquarters: Redmond, Washington, United States
Year founded: 1975
Number of employees: 221,000

Revenues

Microsoft is a multinational technology corporation that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. It is widely known for its flagship products such as the Windows operating system and Microsoft Office suite. The company has expanded into various other technology sectors, including cloud computing (Azure), gaming (Xbox), and enterprise software (Microsoft Dynamics). Microsoft has a strong presence in both consumer and enterprise markets.

Stock chart

Stock chart for Microsoft Corporation.

Source: Yahoo! Finance.

The historical data for Microsoft stock prices can be downloaded from Yahoo! Finance website: Download the data for Microsoft Corporation

#3 Amazon Inc.

Logo of Amazon

Source: the company.

Statistics (2023)

Market Capitalization: $1,011 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Retail (E-Commerce), Cloud Computing
Location of headquarters: Seattle, Washington, United States
Year founded: 1994
Number of employees: 1,465,000

Revenues

Amazon.com, Inc. is an American multinational conglomerate that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is the world’s largest online marketplace and offers a wide range of products and services through its websites and platforms. Amazon’s services include Amazon Prime, Amazon Web Services (AWS), Kindle e-readers, and Amazon Echo devices. The company has also ventured into other areas, such as entertainment production and grocery retail. Amazon has experienced significant growth and expansion since its inception.

Stock chart

Stock chart for Amazon Inc.

Source: Yahoo! Finance.

The historical data for Amazon stock prices can be downloaded from Yahoo! Finance website: Download the data for Amazon

#4 Alphabet Inc. (formerly Google Inc.)

Logo of Alphabet

Source: the company.

Statistics (2023)

Market Capitalization: $1,356 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Internet Services)
Location of headquarters: Mountain View, California, United States
Year founded: 1998
Number of employees: 190,711

Revenues

Alphabet Inc. is a multinational conglomerate that serves as the parent company of Google and several other subsidiaries. Google, as a subsidiary of Alphabet Inc., is a technology company that generates a significant portion of Alphabet’s overall revenues. While specific revenue figures for Google are not provided separately in Alphabet’s financial reports, Google’s advertising business constitutes the majority of Alphabet’s revenue stream. Google primarily generates revenue through its advertising platforms, including Google Search, YouTube, Google Display Network, and Google Ads.

Stock chart

Stock chart for Alphabet Inc.

Source: Yahoo! Finance.

The historical data for Amazon stock prices can be downloaded from Yahoo! Finance website: Download the data for Alphabet

#5 Meta Platforms Inc. (formerly Facebook Inc.)

Logo of Meta

Source: the company.

Statistics (2023)

Market capitalization: $529 billion
Inclusion in stock market indexes: NASDAQ-100, S&P 500
Listing on stock exchanges: NASDAQ
Industry: Technology (Social Media)
Location of headquarters: Menlo Park, California, United States
Year founded: 2004
Number of employees: 86,482

Revenues

Meta Platforms Inc., previously known as Facebook Inc., is a social media and technology company that focuses on connecting people and enabling social interactions. The company operates various social networking platforms, including Facebook, Instagram, WhatsApp, and Messenger. These platforms offer users the ability to share content, communicate with others, and engage in online communities. Meta Platforms Inc. also provides advertising and marketing solutions to businesses, leveraging the vast user base of its platforms. The company has expanded into areas such as virtual reality (Oculus) and artificial intelligence research. It plays a significant role in shaping the digital landscape and has a global user reach.

Stock chart

Stock chart for Meta Platforms

Source: the company.

The historical data for Meta Platforms stock prices can be downloaded from Yahoo! Finance website: Download the data for Meta Platforms

Why should I be interested in this post?

As a management student, understanding the top companies in different markets and their market capitalization holds significant value. It provides you with industry insights, allowing you to comprehend the competitive landscape and trends within specific sectors.

Analyzing market capitalization aids in investment analysis, enabling you to assess the size, growth potential, and financial health of companies. Moreover, studying successful companies (success being measured by their market capitalization) provides valuable lessons in competitive strategy, organizational management, and leadership practices.

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Useful resources

Companies Market Cap Largest American companies by market capitalization

Yahoo! The 30 Largest Companies on the Stock Market

About the author

The article was written in June 2023 by Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023).