Prediction: 2 stocks that will be worth more than the alphabet in 5 years

Alphabet is one of the largest companies in the world. With a market cap of $2 trillion, I am only a handful of stocks that can compete with its size.

However, there are companies that could grow even more than Alphabet over the next five years. Here, I’ll cover two that could accomplish this feat: Meta platform (META 2.26%) and Amazon (AMZN 2.50%).

Image source: Getty Images.

1. Meta platforms

At the time of writing, the market capitalization of Meta platforms stand at about 1.5 trillion dollars. That’s behind Alphabet by a little more than $500 billion.

However, while Meta is only 75% the size of Alphabet, I think so could surpass its rival in the very near future. Here’s why.

First of all, the Meta is huge. The company can claim nearly 3.3 billion daily active users (DAUs) on its platforms, which include Facebook and Instagram. That’s more than a third of the global population application Meta’s platform regularly.

Consequently, given the size of its user base, the company reaps a huge windfall in terms of ad revenue. In its most recently reported quarter, Meta collected $38.3 billion in ad revenue. That’s about $425 million per day.

TrueAlphabet does even more in ad revenue right now, but they are facing some challenges in it key internet search category. That’s it to say nothing of THE recent federal antitrust ruling that labeled the company a monopoly.

In short, Meta’s bread and butter is ad revenue, and it’s an area that’s not only very profitable — Meta’s operating margin is 38% — it’s growing like a weed. The company’s total revenue rose 22% in its most recent quarterdespite its size.

In other words, Meta has plenty of gas in the tank to catch Alphabet by 2029 — if not sooner.

2. Amazon

If the Meta still has a considerable gap to surpass Alphabet, Amazon has only a small crack. As of this writing, Amazon’s market cap of $1.9 trillion dwarfs Alphabet’s market cap by about $100 billion, or about 5%.

Indeedin the last 10 yearsthese two companies have traded places several times, with Alphabet holding a consistent lead from 2014-2018. Amazon advanced from 2018-2022, only to see Alphabet retake the lead in recent years.

However, I think so Amazon will not only does he resume leadership but significantly ahead of Alphabet in the next five years. The main reason Why is that Amazon is starting to hit its stride under CEO Andy Jassy, ​​who took over from Jeff Bezos in 2021.

Three years into the job, Jassy puts on his own brand on Amazon, starting with the company’s increased efficiency. As of the most recently reported quarter, Amazon’s operating margin has climbed to nearly 10%. That’s a significant increase from a recent low of 1.8 percent, reached about a year after Jassy took over from Bezos.

AMZN Operating Margin Data (Quarterly) by YCharts

Two companies to watch

Both Amazon and Meta’s platforms are gaining ground on Alphabet’s giant market cap. While I think all three stocks remain solid long-term buy-and-hold candidates, investors may want to focus on Amazon and Meta, as those companies seem better positioned than Alphabet over the next few years.