Following what was an impressive year for the stock market in 2024, things could be set to be just as good this year. With the AI arms race looking to boost a number of stocks, both Amazon (AMZN) and Alphabet (GOOGL) have their eyes on joining the $3 trillion market cap club, but which could do it first?
Currently, Nvidia (NVDA), Apple (APPL), and Microsoft (MSFT) are the only members of the exclusive club. However, that is likely to change massively in 2025. With various analysts high on both companies entering the year, the club may have two new members join its ranks over the next twelve months.
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Amazon & Alphabet Eye $3 Trillion Club: Can They Both Do It in 2025?
Entering 2025, Wall Street had its eyes on the race to $4 trillion. Apple is currently the leading company by market cap, with Nvidia not far behind. Morover, the market was anxiously awaiting which company would be the first to break through the key level.
Yet, that doesn’t appear to be the most intriguing market-cap conversation as the new year arrives. Alternatively, Amazon and Alphabet’s quest to join the $3 trillion market cap club this year looks to be far more intriguing for the stock market. Although neither would be breaking new ground, they would be clearly signaling a thriving US stock market in the first year of Donald Trump’s second term.
The fifth-largest company by market cap, Amazon is looking to build on its $2.30 trillion mark. Although it is still a long way off, one analyst projected that the stock is set to exceed the $285 price point over the next year. That would indicate a more than 35% jump from its current position. Additionally, it would have the e-commerce juggernaut joining the market cap club.
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Alphabet appears much closer to the feat. The fourth-largest company currently has a market cap of $2.32 trillion. Moreover, $1.3 trillion asset manager Morgan Stanley predicted the feat to happen this year. Indeed, they expect Google’s parent company will surpass the $3 trillion mark before the end of 2025. Specifically, they note a 16.5% projected increase in annual earnings as the driving factor.
For Amazon to reach the same mark, it would need to increase its trailing 12-month sales from $620 billion to $850 billion. That would require a 37% jump over the next year. Moreover, it would represent a massive leap from its 11% growth in recent quarters.
Although not impossible, it seems far less doable. Therefore, it does look like Alphabet is set to join the $3 trillion market cap club before Amazon. However, there is still a chance they could both join in 2025.