The World's Top Stocks: Industry Breakdown

See how industries are recovering from 2022’s global stock collapse.

By Raed Alkhedr | @raedalkhedr | 6 March 2023

The World's Most Valuable Companies by Industry 2
  • Global oil prices support growth for major energy companies.

  • Apple, Amazon, Microsoft, Tesla, and Exxon Mobile follow bullish trends.

  • Nvidia presents new investment opportunities due to diversification.

  • Amazon and Walmart retain industry-leading positions.

  • JP Morgan and the banking sector prepare to rally against challenges.

Global top stocks are recovering value

The stock market has survived various forms of crisis over the past few years, from COVID-19 to March 2020’s stock market crash. Despite this, the world’s largest companies appear to have weathered huge waves of selling and are gradually returning to pre-pandemic market levels.

The technological sector may hold 2023’s top performers

Although 2022 showed shares associated with growth performed best, the technology sector is likely to grow in 2023 – especially if the FED starts to reduce the pace of rising interest rates for giants Apple and Microsoft.

Apple’s stocks are firmly rooted in growth

Apple is 2023’s most valuable company in the world, according to its market capitalization of $2.537 trillion. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has grown into one of the largest and most valuable companies in the world and is renowned for its innovative and high-quality devices like iPhones, iPads, and Macbooks.

In late August 2020, Apple's stock was divided into four to make it a more competitive advantage. Since then, most expectations support the return of its rise to pre-partition levels again.

2023 reports show Apple’s revenue has reached $378.3 billion from a net income of $100.5 billion. Despite facing challenges last year, such as the continued increase in US interest rates and the decline in consumer confidence, Apple stocks have succeeded in maintaining their cohesion.

Microsoft stocks continue to retain high value

Despite Microsoft stocks being amongst the hardest-hit stocks in 2020, they have managed to recover value quickly and have returned to an all-time high of $345. Since 2013, Microsoft has remained the second most valuable company in the world by market capitalization. Its market value exceeded $2 trillion with a recorded revenue of $184.9 billion and a net income of $71.2 billion.

The company was founded by Bill Gates and Paul Allen in 1975, and its primary business is the development of operating systems, software, and hardware. Microsoft is now involved in other areas of technology such as artificial intelligence, video games and social media platforms like Skype and LinkedIn. This diversification has increased investor confidence and suggests Microsoft will be more resistant to future challenges.

Alphabet stocks considered highly for long-term investments

At the end of 2022, Alphabet’s market value reached $1.30 trillion with recorded profits estimated at $257.6 billion and a net income of $76 billion.

2022 also marked Alphabet splitting its stocks, and this horizontal movement still dominates the stock's trading activity. Many consider that due to the company's continued strong performance, it is one of the best long-term investments in the sector.

Alphabet is the holding company of world-famous search engine, Google. Since August 2015, Alphabet has been one of the biggest success stories on the American stock market. It has grown into a global digital empire as a result of significant diversification of the business with sales in over 100 countries.

Tesla stocks continue to rise in value

Last year Tesla’s market value reached $910 billion, reporting a revenue of $53.8 billion and net income of $5.5 billion. In 2023, stocks have reached a level of $200 again and many expect this value to continue a bullish trend in the year ahead.

Founded in 2003, Tesla is a global giant of the automotive industry made popular by its innovative electric cards and celebrity CEO, Elon Musk. It operates in over 30 countries and went public in 2010, two years after Musk became its CEO. In August 2020, Tesla divided stocks into 5 shares, and in August 2022 it split stocks thrice again.

Meta stocks may experience a rebound in 2023

In 2022, Meta’s market value reached $373 billion making it the 13th largest global company by value. Its recent market reports recorded revenues exceeding $117 billion with a net income of $39.4 billion.

Established in 2004, Meta Holding Company owns major digital platforms Facebook, Instagram, Messenger and WhatsApp. In recent years it has also started developing Web3 platform, the Metaverse, that allows users to explore immersive virtual environments through augmented reality technology.

2022 showed bearish trends in Meta stocks with a downturn in quarterly profits during 2022’s Q4, showing little recovery from Q3’s low levels as well.

However, it can be seen by looking closely that there are several factors supporting investment in the stock throughout 2023. Meta has reported a 5% increase in daily active users, which indicates an acceleration from the previous quarter’s 4%. This rebound will likely be reflected in the company’s future plans.

Nvidia’s new tech presents opportunity

2023 reports showed Nvidia’s market capitalization has reached $438 billion. Since the start of the year, stocks have witnessed a remarkable increase reaching levels of $230 per share.

Nvidia is a tech giant that has recently been facing many challenges, from inflation to weak global growth statistics to the geo-political tensions surrounding Russia, Ukraine, the USA, and China. However, its diversification from data centers and games to artificial intelligence and electric car chips may support the company’s bullish performance in the coming period.

2023 may present challenges for the retail sector

With the weakness of the economy, retail, and entertainment companies, which are affected by economic courses such as Amazon and Wall Mart, may face many challenges during the year 2023. The continued inflation increases and the decline in consumer confidence may pressure at least the performance of those companies in the short term. But in the long run, once the global economy recovered, these shares may return to rise strongly.

Amazon splits stocks creating a strong competitive advantage

Amazon’s 2022 market value reached $1.42 trillion with a recorded revenue of $469.8 billion and a net income of $33.4 billion.

Amazon is considered one of the biggest e-commerce companies and is arguably THE e-shopping giant. Founded in 1994 by Jeff Bezos, it is best known for its online retail platform that enables home delivery of an enormous variety of goods. The company has a strong global presence with operations and sales in over 20 countries.

In contrast to companies in the technology sector, the retail company enjoyed strong sales during 2020 as Covid-19 pandemic required global populations to remain at home. The company also divided stocks by twenty in June 2022, creating a greater competitive advantage after recording a strong rise in value.

Walmart remains America’s largest grocer by revenue

Walmart’s 2022 market value reached $387.72 billion with a recorded revenue of $573 billion and a net income of $8.96 billion.

Established in 1962, Walmart is a retail company that is one of the largest electronic stores in over 27 countries. It is currently considered America’s largest grocer by revenue with low grocery prices that have attracted low-, middle-, and high-income customers.

Statistics have shown that investing $1,000 in Wal-Mart stock from ten years ago would now be more than doubled in value to $2,390.

Despite facing the challenges of declining consumer confidence and high inflation, the company's performance is still coherent. This was reflected in 2022’s final quarterly earnings and contributes to increasing investor confidence for the stock's performance in 2023.

Rising global oil prices support stocks in the energy sector

Last year’s increase in oil prices is creating growth for companies in the energy sector. Global giants, Chevron and Exxon Mobile, retain bullish trends matched by Saudi Aramco becoming the second largest global company by market value thanks to strong profits in 2022.

Exxon Mobil achieved record profits in 2022

2022 market reports show the world’s largest oil giant achieved record profits of $55 billion, marking the highest revenues since 2013. Its current market value exceeds $385 billion showing a successful rebound from being removed from the Dow Jones Industrial Average (DJIA) index in August 2022 after being listed for 92 years.

Exxon Mobil has undoubtedly benefited from the rise in global oil prices. Capital and exploration expenditures increased to $22.7 billion in 2022 from $16.6 billion in 2021. Its stock also rose 50% last year, and many investors expect the rise to continue with company plans to buy $50 billion in stock buybacks between 2022 and 2024.

JP Morgan and the banking sector rallying hard to face recent challenges

2022 market reports show JP Morgan’s market value reached $385 billion with recorded revenues of $123.4 billion and a net income of $37 billion.

JP Morgan is one of the largest financial institutions in the world. The company has provided a range of financial products and services, including retail and commercial banking, asset and wealth management, and investment banking since its founding in 1799.

The financial institution exceeded profits and revenues defeated expectations during 2022’s Q4 reports. The institution was expected to report a net interest income of $73 billion, down from levels in the fourth quarter of last year. In 2023, expenses will reach about $81 billion, up from $75.9 billion in 2022, due to factors such as wage inflation, hiring schemes, and investments in technology.

World’s largest companies are returning to pre-pandemic market levels.