Alphabets Hits $2 Trillion

Alphabet's market cap crossed the $2 trillion mark for the first time yesterday, joining Apple and Microsoft in this exclusive club. I have to mention that all three companies are part of the Vestact model portfolio. What's even more mind-blowing is that Alphabet only hit the $1 trillion mark in January last year, making it the fastest to go from $1 trillion to $2 trillion.

Alphabet has been one of the top performers in our model portfolio, with returns of 72.7% year-to-date. The catalyst has been the growth in Youtube and Google's advertising business as individuals and businesses move online in this pandemic.

Google's parent hasn't been the best performer over the past five years when compared to its peers Amazon, Apple, and Microsoft, but it has still crushed the market. To enjoy these outsized returns, you had to be patient during periods of no growth. On a valuation basis, Alphabet is still cheaper than many of the other tech heavies, except for Meta Platforms.