Seven U.S. tech giants – Apple, Microsoft, Amazon, Google parent Alphabet, Facebook, tesla and Nvidia – added $3.4 trillion to their total market capitalization, driven by the new global crown epidemic and widespread economic crisis in 2020. Of these, the wild spike in Tesla’s stock price was the biggest surprise.
The company’s stock price has doubled sevenfold in 2020, pushing the electric car maker’s market cap from $76 billion at the start of the year to $669 billion at Thursday’s close. Its shares rallied sharply despite the company’s initial plant closures at one point due to the New Crown outbreak, and it delivered a record number of electric cars in the third quarter.
In December, Tesla became a constituent of the S&P 500, joining the index with the fifth highest weighting after five consecutive quarters of profitability.
Meanwhile, chipmaker Nvidia’s market capitalization more than doubled in 2020 and now stands at $323 billion, making it the seventh-ranked technology company by market capitalization and the 16th-ranked U.S. company by market capitalization overall.
The largest increase in market capitalization in 2020 was for Apple, whose stock price rose 81 percent and the company’s market capitalization rose by nearly $1 trillion. Amazon’s market capitalization grew by $710 billion in 2020 thanks to growth in its consumer and cloud computing businesses. In addition, Microsoft’s market capitalization grew by $480 billion last year, Alphabet grew by $268 billion and Facebook grew by $193 billion.
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