The 10 Most Valuable Companies In America

Apple became the most valuable company 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. At any time, one of the companies on this list could pass another if a stock moves enough. The list, therefore, is hardly permanent.

Here's now the list of  The 10 Most Valuable Companies In America:

10. Procter & Gamble

Industry: consumer products

P&G is 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.

9. AT&T

Industry: telecommunications

AT&T is one of the largest telecom companies in the world, and 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 or VoIP products. 

8. Berkshire Hathaway

Industry: conglomerate

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. 

7. Wal-Mart

Industry: retail

The world’s largest retailer and is the biggest single employer in the U.S. Wal-Mart 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. 

6. Google

Industry: Internet

Google’s shares have been helped this year by a surge in sales and profits. 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. 

5. Chevron

Industry: oil

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. Current concerns around the company are that the International Energy Agency has recently said oil demand will be down over the next year. 

4. IBM

Industry: technology

IBM 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. IBM has also been able to slash its employee base and export jobs to places like India and China. 

3. Microsoft

Industry: software

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 Microsoft is that it has diversified into non-core business, including game console and search.

2. Exxon Mobil

Industry: oil

Exxon is the world largest oil company, and in a good quarter it can make 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. 

1. Apple

Industry: consumer electronics

As its stock has moved up 125% over two years, Apple has leapt over the other companies on the top 10 list. Apple’s strength, as far as the market is concerned, is that its sales nearly double in some quarters. 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.

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From: 24/7 Wall St.