Prediction: These Will Be the 10 Largest Stocks by 2035
Today, it takes a market cap of just over $550 billion to earn a spot on the top 10 list. And this is likely to rise in the future. If the stock market averages 9% annualized returns between now and 2035, that implies that the 10 largest companies will have market caps of about $1.7 trillion or greater, and some will likely be several times larger than this threshold. With that in mind, here are 10 companies (in no particular order) that I think have an excellent shot of being on the list when 2035 arrives.
This shouldn't come as a surprise to anyone. With a market cap of about $2.7 trillion today, Apple would likely be firmly in the top 10 in 2035 even if it doesn't appreciate in value at all. But with an extremely loyal customer base, tremendous pricing power, and the ability to generate over $100 billion in free cash flow annually, I wouldn't be shocked to see Apple become the first $5 trillion company, and well before 2035.
With a market cap of about $1.63 trillion, Amazon is one of the largest companies today, but don't make the mistake of thinking it has maxed out its potential. After all, e-commerce is still less than 15% of total U.S. retail sales, its Amazon Web Services (AWS) business has a rapidly growing addressable market, and there are several other areas Amazon could expand into over the next decade or so.
Source Fool.com
