Top 10 Most Expensive Companies in the United States
Here are the list of top 10 most expensive companies in the United States. Apple became the most expensive companies in America yesterday when its market cap passed Exxon Mobil’s. The move draws attention to what market capitalization means, and why it is important. The total value of a company is driven by market forces as investors fight over the value of a company’s assets, earnings, and future business prospects. The market cap of each company is skewed by how quickly the stock trades and within what range.
10. Procter & Gamble – Market cap: $163 billion
P&G is the most expensive companies and the world’s largest consumer product company and does business in over 100 countries. Its broad array of products ranges from razors to soap to skin care. The company’s margins have been challenged with the rise of certain commodities prices, but management claims that most of this can be offset by increasing what it charges for its products. P&G has a number of small competitors like Colgate, but none have been able to take meaningful share from the market leader. P&G trades in a 52-week price range of $68 to $57. It changes hands at $59 and will probably remain at that low level until it is clear that the consumer economy has recovered.
9. AT&T – Market cap: $165 billion
AT&T is one of the largest telecom companies in the world and the most expensive companies in the United States. It has huge franchises in wire line phones, cellular service, and fiber to the home. The last business competes with cable TV. AT&T’s wire line business shrinks with every customer who cancels his or her home phone service and moves to cellular of VoIP products. The cellular business has become more competitive as the number of U.S. customer reaches a saturation point. The company trades in a 52-week price range of $32 to $26 and trades now at $28. The company’s stock will stay under pressure until the T-Mobile deal closes.
8. Berkshire Hathaway – Market cap: $169 billion
Warren Buffett’s conglomerate owns everything from railroads to newspapers to insurance companies. Part of the company’s appeal to Wall St. is the fact that Warren Buffett’s investing track record over the last 30 years is unequaled. Buffett tends to be a long-term investor and has held positions in corporations like Coca Cola for years. One of the major concerns about the company is that Buffett is 80 years old. The stock of this most expensive companies trades in 52-week range of $87 to $66. Shares are now at $68 on concerns that Buffett’s wide range of companies has exposure across the entire economy, and his insurance companies have investment in derivatives.
7. Wal-Mart – Market cap: $168 billion
The world’s largest retailer has sales of $415 billion, and is the biggest single employer in the U.S. This most expensive companies has struggled mightily with stalled sales in the U.S. where it competes with Target, Costco, and Sears. Its overseas sales have been up sharply, mostly because of success in China and Mexico. The stock trades in a 52-week price range of $58 and $49.
6. Google – Market cap: $177 billion
The company still dominates the search engine market and has nearly three quarters of this business in the U.S. and most of Europe. Its position in big countries like China, India, and Russia is weaker. The market’s main complaint about Google is that it has continued to make huge investments in personnel and in products that are not profitable. The stock’s 52-week price range is $642 and $447. It trades of this most expensive companies at $560 now and profit momentum should move that number up.
5. Chevron – Market cap: $181 billion
Chevron is essentially a smaller version of Exxon with both large exploration and refining operations. Investors have largely applauded the company’s move into the natural gas business. This most expensive companies made $11 billion last quarter and has a huge cash balance. Its 52-week price range is $109 to $72. It trades at $91 and the momentum is likely to drop with oil prices.
4. IBM – Market cap: $194 billion
This most expensive companies is to enterprise computing what Microsoft is to personal computing. IBM has diversified out of its traditional hardware business into services, software, and financing of customer purchases. Solid product management has allowed the company to push past traditional rival like HP. The stock has a 52-week price range of $185 to $122 and trades at $167 now. The company’s recent improvement in earnings means that the price momentum on the shares is up.
3. Microsoft – Market cap: $202 billion
Microsoft was the No.1 company by market cap a decade ago. The stock has been frozen at 2001 levels for 10 years. The market’s trouble with this most expensive companies is that it has diversified into non-core business, including game console and search. Meanwhile, the company’s core software businesses are under assault by cloud computing businesses from companies like Google. The stock’s 52- week price range is $29.50 to $23.30. Shares trade at $24.55 now.
2. Exxon Mobil – Market cap: $330 billion.
Exxon is the world largest oil company and the most expensive companies in the U.S, and in a good quarter it can mark over $10 billion in net income. The rise and fall of its market cap value is tied to some extent to the price of oil. The stock trades at $70, and its 52-week price range is $88 to $58.
1. Apple – Market cap: $337 billion
As its stock has moved up 125% over two years, Apple has leapt over the other companies on the top of the most expensive companies. Apple’s strength, as far as the market is concerned, is that its sales nearly double in some quarters. Revenue is now nearing $100 billion and profits are over $11 billion a quarter, which matches Exxon. Apple’s product introduction cycle and the high regard analysts have for the company make it likely shares will rise sharply over the next year. The stock has traded in a 52-week price range of $404 and $235. This most expensive companies currently trades at $368.