From Tesla to Netflix: These are the companies that look set to join the ‘$1 trillion club’ in the next 5 years

Tesla CEO Elon Musk
Tesla CEO Elon Musk. Britta Pedersen/Pool/AFP via Getty Images
  • Tencent, Netflix, Berkshire Hathaway, and Visa are among companies headed towards the trillion-dollar stock market valuation, a study shows.
  • The study compared the market cap of the 50 biggest public companies along with their average annual growth.
  • Estimates for Chinese firms do not factor in Beijing’s most recent regulatory crackdowns.
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Tesla, Netflix, and Warren Buffett’s Berkshire Hathaway are among 16 companies in the race to hit the $US1 ($AU1) trillion mark within the next five years, according to a recent study by cloud-based procurement solutions provider Approve.com.

Facebook became the fifth US company to join the $US1 ($AU1) trillion club in late June this year, joining other tech leaders such as Apple, Microsoft, Amazon, and Google parent Alphabet to achieve that milestone. Oil producer Saudi Aramco is the only non-US company in the exclusive club.

Approve.com analyzed the market caps of the 50 biggest publicly-listed companies alongside their average annual growth to find which ones could hit the 13-digit mark the quickest. The analysis, published in July, showed that even more tech companies are set to dominate the trillion-dollar zone.

Projections made for Chinese-based companies in this study are based on annual growth rates, and don’t include the impact of the recent regulatory crackdowns. These companies have had a turbulent year, ever since Beijing began to tighten its grip on services that were abruptly presented with new compliance challenges.

Here are the 16 companies on track to reach a $US1 ($AU1) trillion-dollar valuation by 2026:

1. Tesla
Tesla Roadster.
Market Cap: $US754 ($AU1,038) billion
Sector: Automotive (US)
Estimated year to hit $US1 ($AU1) trillion: 2022
Average annual growth rate: 123.87%
2. Tencent
Tencent
Market Cap: $US569 ($AU783) billion
Sector: Technology (China)
Estimated year to hit $US1 ($AU1) trillion: 2022
Average annual growth rate: 97.04%
3. Comcast
Comcast building
Market Cap: $US263 ($AU362) billion
Sector: Telecommunications (US)
Estimated year to hit $US1 ($AU1) trillion: 2023
Average annual growth rate: 186.93%

 

4. Meituan
Visitors look at a Meituan Autonomous Delivery (MAD) vehicle of Chinese food delivery platform Meituan-Dianping, at the first Smart China Expo in Chongqing, China August 23, 2018. Picture taken August 23, 2018. REUTERS/Stringer
Market Cap: $US179 ($AU246) billion
Sector: E-commerce (China)
Estimated year to hit $US1 ($AU1) trillion: 2023
Average annual growth rate: 115.74%
5. Nvidia
Nvidia employees
Market Cap: $US555 ($AU764) billion
Sector: Technology (US)
Estimated year to hit $US1 ($AU1) trillion: 2024
Average annual growth rate: 48.27%
6. Kweichow Moutai
A rare collection of Kweichow Moutai baijiu that features sunflower logos instead of the usual flying fairy.
Market Cap: $US317 ($AU436) billion
Sector: Alcohol (China)
Estimated year to hit $US1 ($AU1) trillion: 2024
Average annual growth rate: 48.6%
7. Netflix
Netflix
Market Cap: $US257 ($AU354) billion
Sector: Entertainment (US)
Estimated year to hit $US1 ($AU1) trillion: 2024
Average annual growth rate: 74.16%
8. Alibaba Group
Jack ma
Jack Ma. ANTHONY WALLACE/AFP via Getty Images
Market Cap: $US433 ($AU596) billion
Sector: Technology (China)
Estimated year to hit $US1 ($AU1) trillion: 2025
Average annual growth rate: 19.16%
9. Taiwan Semiconductor Manufacturing Company
A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan October 5, 2017. REUTERS/Eason Lam
Market Cap: $US620 ($AU853) billion
Sector: Semiconductors (Taiwan)
Estimated year to hit $US1 ($AU1) trillion: 2025
Average annual growth rate: 16.05%
10. Visa
AP21064764810888
Market Cap: $US492 ($AU677) billion
Sector: Financial Services
Estimated year to hit $US1 ($AU1) trillion: 2025
Average annual growth rate: 22.32%
11. Mastercard
Mastercard
Market Cap: $US342 ($AU471) billion
Sector: Financial Services (US)
Estimated year to hit $US1 ($AU1) trillion: 2025
Average annual growth rate: 32.15%
12. PayPal
GettyImages 1232621646
Market Cap: $US332 ($AU457) billion
Sector: Financial Services (US)
Estimated year to hit $US1 ($AU1) trillion: 2025
Average annual growth rate: 43.71%
13. Berkshire Hathaway
Warren Buffett
Market Cap: $US635 ($AU874) billion
Sector: Investment (US)
Estimated year to hit $US1 ($AU1) trillion: 2026
Average annual growth rate: 10.49%
14. Samsung
Samsung Galaxy Fold Z 2 5G
Market Cap: $US444 ($AU611) billion
Sector: Technology (South Korea)
Estimated year to hit $US1 ($AU1) trillion: 2026
Average annual growth rate: 19.24%
15. LVMH
LVMH
Market Cap: $US372 ($AU512) billion
Sector: Luxury Goods (France)
Estimated year to hit $US1 ($AU1) trillion: 2026
Average annual growth rate: 22.78%
16. Salesforce
Salesforce San Francisco
Market Cap: $US250 ($AU344) billion
Sector: Software (US)
Estimated year to hit $US1 ($AU1) trillion: 2026
Average annual growth rate: 40.67%