The ongoing earnings season is expected to bring about significant changes in the rankings of the largest U.S. companies. Amazon.com Inc. (AMZN) is on the verge of overtaking Alphabet Inc. (GOOG, GOOGL) and securing the position of the third-largest public company in the United States with its impressive financial results. Following a positive reception on Wall Street for Amazon’s report, its market valuation stands at $1.78 trillion, slightly edging out Alphabet’s market capitalization of $1.77 trillion.
This marks a notable shift as Amazon has not exceeded Google’s parent company in value since September 30, 2022. It was also the last time Amazon held the title of the third-largest company by market capitalization.
Wall Street analysts have been particularly pleased with Amazon’s latest report, which highlighted substantial improvement in operating income and showcased the company’s strong performance in its cloud services and retail sectors. Conversely, Alphabet’s earnings failed to garner the same level of enthusiasm as the company emphasized extensive spending plans concerning its artificial intelligence endeavors.
Although Amazon’s fortune has dipped slightly with a 7.8% decline from its peak closing price of $186.57 in July 2021, Alphabet’s stock remains within reach of its all-time high. Currently down by 3.5% from its closing record of $153.51 on January 29, Alphabet retains a solid position in the market.
While recent changes in market capitalization are not solely tied to earnings, the top of the ranking hierarchy has experienced a shake-up. Microsoft Corp. (MSFT) surpassed Apple Inc. (AAPL) in terms of valuation on January 12, marking the first time since November 2021 that Microsoft claimed the top spot. Microsoft has maintained its position since January 25.
Furthermore, Microsoft is now the sole member of the $3 trillion club, as Apple, the only other U.S. company to have reached this milestone, has fallen out of it.
As the earnings season unfolds, the dynamic landscape of the largest U.S. companies continues to evolve. Investors eagerly await further developments and insights into future performance.