Prediction: 2 stocks that will be worth more than Alphabet in 5 years

alphabet is one of the world’s largest companies. With a market cap of $2 trillion there are just a handful of stocks The can keep up with its size.

However, There are companies that could do that become even larger than Alphabet within the next five years. Here I will introduce two that could achieve this feat: Meta Platforms (META 2.26%) And Amazon (AMZN 2.50%).

1. Metaplatforms

At the time of this writing, Meta Platforms’ market cap is stands by about $1.5 trillion. That’s just over $500 billion behind Alphabet.

But while Meta is only 75% the size of Alphabet, I find it could overtake its rival in the very near future. Here’s why.

First, meta is huge. The company boasts nearly 3.3 billion daily active users (DAUs) across its platforms. which include Facebook and Instagram. That means more than a third of the world’s population used Visit Meta’s platform regularly.

Accordingly, the company reaps a huge profit in advertising revenue given the size of its user base. In the last reported quarter, Meta generated advertising revenue of $38.3 billion. That equates to about $425 million per day.

TRUEAlphabet does even more In Advertising revenue is currently declining, but there is some to come challenges in his Key Internet search category. That is to say Nothing from The recent Federal Cartel Office ruling that described the company as a monopoly.

In short, Meta’s bread and butter is advertising revenue, and not only is this area extremely lucrative – Meta’s operating margin is a whopping 38% – it’s also growing like a weed. The company’s total revenue increased 22% in the most recent quarterdespite its size.

In other words, Meta has plenty of gas in the tank to catch up with Alphabet by 2029 – if not sooner.

2. Amazon

When meta still has a significant gap Amazon only has a tiny lead to overtake Alphabet. As of this writing, Amazon’s $1.9 trillion market cap trails Alphabet’s market cap by about $100 billion, or about 5%.

Indeedin the last 10 yearsThese two companies have swapped places several times, with Alphabet having a stable lead from 2014 to 2018. Amazon was able to stay ahead from 2018 to 2022, but in recent years Alphabet has taken the lead again.

However, I find Amazon will do it not just take back the lead, but We will be significantly ahead of Alphabet in the next five years. The main reason Why is that Amazon is gaining momentum under CEO Andy Jassy, ​​who succeeded Jeff Bezos in 2021.

After three years on the job, Jassy is resigning from his job own Mark at Amazon, starting with the company’s increased efficiency. In the last reported quarter, Amazon’s operating margin rose to almost 10%. That’s a significant increase from the recent low of 1.8%, reached about a year after Jassy took over from Bezos.

AMZN Operating Margin (Quarterly) data from YCharts

Two companies to keep an eye on

Both Amazon and Meta Platforms are gaining ground on Alphabet’s huge market cap. While I believe all three stocks remain solid buy-and-hold candidates over the long term, investors may want to focus on Amazon and Meta, as these companies appear to be better positioned than Alphabet over the next few years.