The world’s most valuable stock market companies originate from the USA. Companies from Germany and Europe are only in the last place.
The United States is outpacing Europe despite massive price losses by US tech companies in the stock market. According to a study by consulting firm EY, 61 of the world’s 100 most valuable companies come from the US alone, which is just one less than the previous year.
No companies from Europe are represented in the top 10, and only one company from outside the USA – the oil company Saudi Aramco. As of December 27, Apple held the lead, ahead of Saudi Aramco and Microsoft, with a good $2 trillion market cap in the rankings released Thursday.
SAP most valuable German company
German companies are not even represented in the top 100 – software maker SAP ranks only 106th as the most valuable Dax value Ireland-based industrial gases group Linde is ranked 59th since its merger with US company Praxair.
Companies from the USA have dominated the world stock markets for many years, encouraged by the growth of technology companies that have gained value rapidly in the stock market boom in recent years. But in a weak stock market year 2022, interest rate-sensitive tech giants faced headwinds as major central banks hiked interest rates.
Technology companies lost 33 percent in value
Technology companies lost 33 percent of their market value during the year, according to EY. Tesla, Apple, Meta, Microsoft, Alphabet and Amazon alone lost $4.6 trillion.
Overall, the 100 largest publicly traded companies lost $7.2 trillion, or 20 percent of their value. Consumer goods and telecommunications companies also recorded sharp price losses, while energy companies in particular rose (up 12 percent) thanks to rising commodity prices.
“The sharp rise in interest rates, the Ukraine war and rising energy prices around the world – all these developments have left their mark on the world stock markets,” said EY CEO Henrik Ahlers.
According to EY, only 15 of the 100 largest listed companies are headquartered in Europe, so the most valuable representative is from Asia, with 19 of the largest listed companies led by French luxury group LVMH. tencent
Europe’s importance in the stock market is declining
Europe’s importance in the stock market has been declining for years. According to Ahlers, companies from the USA and Asia set the rules of the digital economy. Germany lacked a distinct start-up culture and good financing conditions for young companies.
However, there are many mid-sized world market leaders in Germany, as well as top-notch companies such as Lidl and Aldi or the automotive supplier Bosch. In addition, Germany and Europe suffer disproportionately from the Ukraine war and the rise in energy prices.
Source: ZDF
I am Ben Stock, a highly experienced professional with over 7 years of experience in the news industry. I specialize in market section writing and have published numerous high-quality articles on various topics under my name. My passion for journalism has helped me to develop an in-depth understanding of the industry, enabling me to stay up-to-date on all the latest trends and developments.
