Big, huge things have always been impressive and wondering in souls, whatever they are. If you see a huge building, a giant machine, or even a large person, a lot of questions arise within you.
You may ask how - how this machine was made - or you may ask why - why this building was built so big - and other questions.
This is the case for entrepreneurs, professional employees and those interested in financial culture in general, they are always looking for the largest companies in the world in all fields to learn and improve themselves, their skills, work environments and production to achieve better results.
This is the most important purpose of the search for the largest and best institutions and specialists in each field, and this is what we started with this continuous series of talk about the best and largest companies in the world in various fields.
If you are interested in entrepreneurship, management skills, technology, research and development, then you are in the right place. This is our main concern at Seo7u, and here you will find information and facts that will benefit you, God willing, in your practical and scientific life.
Important information you should know about the largest companies in the world
Before you start browsing this guide, there is some information that you must absorb well in order to get the most benefit.
How is corporate value determined?
There are a lot of classifications of the largest companies in the world, but in this guide we are talking about the largest companies in the world in terms of market capitalization of the company.
There are two types of valuation for any company in the market:
These two assessments are confused by many people, for example, when you read the news and hear that Apple has exceeded the market value of one trillion dollars, and at the same time you see another news that the value of Apple is approximately 140 billion dollars.
Then you get confused, but it is simpler than that, and it all comes down to how companies are evaluated, and as I mentioned there are two types of evaluation.
The first type: the value of the company according to the total shares offered in the stock exchange and the share price.
The second type: the value of the company according to its property and assets (land - real estate - patents - machinery).
The first type, which is called (market capitalization), is the product of multiplying the number of the company's shares offered on the stock exchange by the price of one share.
Thus, this value depends mainly on the value of the share price, which changes according to many factors, despite that, this is the most common method of evaluating companies in various countries of the world.
That is why we have relied on them to rank the world's most valuable companies in the market, which you will find in this guide.
As for the second type, it is the value of the company and its properties on the ground. If the company decides now to sell all its assets, how much money will it get?
This type of evaluation is called (Book Value), because it depends on the accounts, numbers, and the value of each asset owned by the company, so you find that this evaluation is somewhat fixed and does not change much unlike the first type.
The truth about the world's largest companies
As I mentioned earlier, there are many classifications about the largest companies in the world, for example there are:
The largest companies in the world in terms of spread all over the globe.
The largest companies in the world in terms of the number of services and products provided to people.
The world's largest companies in a particular field.
And other classifications, but we will focus in this guide on the market value of companies, which I would like to emphasize that it is variable, perhaps after a month from now the order will change.
Note that we have relied on the best platforms in the world for corporate news and to calculate their market value in all sectors.
As I indicated to my dear reader earlier, this guide is just the beginning, so expect from us soon a lot of information about the world's largest companies in various classifications.
And not only that, but the success stories of the most important of these companies and how they started, and the most important services and products that made them occupy such a great position so that you can benefit from them and learn.
That's why be sure to follow Seo7u constantly, as there is a lot of information coming to you... Now let me introduce you to the largest companies in the world by market value.
The 10 largest companies in the world by market capitalization
1. Saudi Aramco
(market value: 1.88 trillion US dollars)
Most of the world's investors in late 2019 were waiting for one of the most important financial events, namely the listing of a part of Saudi Aramco for trading on the stock exchange.
Saudi Aramco is one of the world's giants in the production of oil and natural gas, and it also contributes to many petrochemical industries.
It is true that the company is owned by the government, but recently the Saudi government tried to exploit the value of the company by offering a small part of it (less than 5%) on the stock exchange and using the proceeds to expand the company's activities.
Although the company has branches and investments in many countries of the world, such as:
- United States of America
- Russia
- China
- United kingdom
- Japan
- The United Arab Emirates
It also cooperates with many of the world's largest companies, especially in the petroleum sector... However, the new Saudi economic plan focuses on diversifying sources of income, and not being completely dependent on oil and natural resources.
Although this public offering (IPO) of Aramco on the stock exchange did not achieve the expected results from the government, which wanted the value of the company to reach $2 trillion.
However, Aramco has now become the world's most valuable company in the market, and it is expected that more of the company's shares will be put on the market, especially for investors from outside the Kingdom of Saudi Arabia.
The company's plan is to use these revenues and invest them in the sectors of transportation, means of communication, electronic protection and others.
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2. Apple Inc.
(market capitalization: 1.379 trillion US dollars)
We all know what the symbol of the apple cut off from a small part on the right means, this symbol means luxury and strength.
It is the technology giant Apple, which is considered the most powerful commercial brand in the world. The Apple logo on any product means that this product has high efficiency and excellent quality.
Apple was ranked first in the list of the world's most valuable companies in the market, but it fell slightly due to Aramco and also due to the decline in sales of some products recently launched by Apple.
Apple was founded in 1976 by Steve Wozniak, Ronald Wayne and the giant Steve Jobs, which many consider the main reason behind the success of this huge edifice.
He was the reason behind the development of the famous iPhone that revolutionized the world of technology and the smartphone industry, which was the main reason behind the company's success and domination of the market.
Apple not only produces phones, but also laptops (Mac Book), tablets (IPad) and desktops (Mac).
This is in addition to the development of the operating system (Mac) for computers and the system (IOS) for phones, and other projects and products that ensure Apple dominate the market.
Although there are a lot of competitors in this field such as Google, Microsoft and Samsung, Apple leads the scene in terms of smart devices and achieves the highest sales and profits.
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3. Microsoft Corporation of America
(market value: 1.274 trillion dollars)
If you are reading these words now from your desktop, you are often using the famous Windows operating system… which was developed by the giant Microsoft Corporation.
Microsoft was founded by Bill Gates in 1975, who is considered by many people, myself included, as the best entrepreneur in recent history.
He is a programmer and web developer, and he broke into the world of the Internet with a new product that he developed himself when he found that the market needed it. He is a vivid example of an entrepreneur who reads the market to know his problems and then uses his skills to develop a practical solution to these problems.
Microsoft offers many products and services, including Cloud Services, represented by Microsoft Azure, which is the closest competitor to Amazon web services, which will be mentioned later.
The reason that made Microsoft jump to this position recently is that it obtained contracts to build the technological infrastructure of the US Department of Defense, which included building several databases to facilitate the work of the various intelligence agencies.
There was a struggle between Google, Amazon, Microsoft and IBM to win these long-term contracts, which are estimated to be worth billions and which were eventually decided by Microsoft.
It is worth noting that many reports and news indicate that Amazon would have won these contracts had it not been for the intervention of US President Donald Trump at the last moment, who turned the rudder on Microsoft because of his dispute with Jeff Bezos, founder of Amazon and the richest person in the world.
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4. US Alphabet Corporation
(market value: 1.02 trillion US dollars)
Alphabet is the holding company that owns the world's tech giant Google, which many people consider their window to the Internet.
Who among us does not use the Google Chrome browser or the Android phone, or at least depends on the Google search engine or YouTube for information or on Google Maps to search for places and know the right way to reach them.
Google offers more than 50 different products and services, from search engines to mobile phones and smart home controls.
Soon we will have several stops with this giant edifice. There is a lot of terrifying information about this company and the size of the services it provides and its impact on the world.
Read also: Everything you need to know about Google
5. Amazon USA
(market capitalization $924 billion)
At the beginning of 2019, Amazon was the world's most valuable company in the market, but it fell at the beginning of the current world until it reached the fifth place.
Despite this, many investors consider Amazon to be the most powerful company in the world, which if it is not scaled will be able to dominate the global market due to its expansion and its ongoing projects.
Some think that Amazon is only the largest online store in the world, and they do not know that the real strength of Amazon is the Amazon Web Services for cloud services, which thousands of giant companies around the world rely on, including Google and Facebook.
That is why almost 50% of the total traffic on the Internet in the world goes through the servers of Amazon, as AWS is the most profitable service for the company.
Also, Amazon manufactures many, many products and services, which number more than 75 services and products, so Amazon is the largest company in the world with information and data on consumer behavior, and how they buy anything online.
Amazon was founded in 1994 by Jeff Bezos, which is why he is currently the richest person in the world.
It is worth noting that Amazon is the richest company in the world in terms of assets and properties, as it owns a group of assets valued at $232 billion.
Amazon needs from us a lot and a lot of guides and articles in order to explain its services, and what will happen in the future if it continues with its investment policies and monopolizing the markets.
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6. Facebook Inc.
(market capitalization $633 billion)
Facebook is the largest company in the world in the field of social media, as it owns many services and applications such as:
- What's Up
- Messenger
These applications depend on more than 2 billion users in different countries, and for this reason, the Facebook platform has become the best advertising platform in the world.
This is the secret behind its high value in the market, as the company relies on artificial intelligence techniques and data collection on users to provide advertisers with the best targeting tools in advertising campaigns.
Read also: How to Make Money on Facebook: 11 Easy Ways
Facebook was founded in 2004 by Mark Zuckerberg, who is considered one of the most prominent entrepreneurs and developers of the past 20 years.
7. China's Alibaba
(market capitalization $610.13 billion)
We can liken Alibaba to Amazon, as it specializes in the field of retail, but what distinguishes it is providing a platform that connects various Chinese manufacturers and suppliers with merchants and distributors from different countries of the world.
Alibaba represents the success story of one of the most famous entrepreneurs in the world, the giant Jack Ma, whose life story is a lesson for everyone who wants to succeed in life.
8. Berkshire Hathaway, USA
(market capitalization $562.39 billion)
I think you know who is Warren Buffett who is considered the best investor in history, who has been the richest person in the world for a long time, and is currently the third richest person in the world.
Berkshire Hathaway is the investment company set up by Warren Buffet, which has grown in popularity over the years and gained the trust of many entrepreneurs and investors.
Berkshire Hathaway is based on owning a large group of companies in several sectors such as:
- railway
- food
- Transportation
- Various insurance services
It also has stakes in a group of companies that provide many services in the United States of America, such as McLane and others.
9. China Tencent Corporation
(market capitalization $492.9 billion)
Tencent is currently the most valuable Asian company in the world, although many people may not have heard of its name before.
This is because it has a lot of activities in several areas, and most of these activities are in China. The company works in the areas of:
- video games
- Applications
- web services
- investment
For example, one of Tencent's most famous investments is its ownership of the majority of Roit Games, the developer of the famous Leage Of Legends game.
This is in addition to owning a stake in the giant company, Epic Games, developer of the famous Fortnite game, and other investments that return to the company with huge profits annually.
That is why many analysts consider that Tencent, Alibaba and Huawei represent China's great gateway to climb to the first place in the world economy.
10. US Visa
(market capitalization $441.61 billion)
One of the world's largest companies in the payments and money transfer sector, Visa's payment system is used in more than 200 countries around the world, on which most banking institutions and companies rely on various financial transactions.
Read also: Steps to buy online and how to pay with credit card
Visa has many headquarters around the world, and the data centers it relies on are deployed in more than one place to ensure data security and speedy transfer between different parties.
Conclusion
Knowing the world's largest companies in the market and the trends of global financial markets has a great impact on all entrepreneurs. Every step taken by any of these companies results in many golden opportunities.
On the contrary, there may be turmoil in the markets and a decline in some goods and services. All this must be taken into account by any entrepreneur before taking any step forward.
Also, the current movements in the markets, in which the process of speculation in the stock exchange and buying shares has become much easier than before, deserves to be monitored, making you closely follow everything that is happening in the market.
That's why be sure to follow Seo7u frequently, as soon we will be releasing a comprehensive guide on changes in the markets, and how you can use it to invest and build wealth.
