Global research conducted by Bank of America shows that shares of technology companies in the United States have made history due to their development over the past few years. The movement of the shares of these US technology companies makes their share value higher than the entire stock market in Europe.
Reporting from CNBC, Bank of America stated that this is the first time for the technology sector in the United States to reach USD 9.1 trillion. This means that the United States has succeeded in surpassing Europe, including Britain and Switzerland, whose market capitalization is USD 8.9 trillion.
"As a comparison, in 2007, European shares were four times larger than the technology stocks of the United States," the website reported, Jakarta , Saturday (29/8).
Among the pool of US technology companies, Amazon is one of the most prominent. Since 1990, Amazon has indeed grown dominantly in the world of e-commerce. However, the rise of the cloud computing technology industry (companies that use the internet as the main server) have helped to increase stocks over the past decade.
This is demonstrated by the increase in share prices to 20 times higher on last Thursday compared to August 2010. The shrinking of the European technology industry is reflected in the overall performance of the US and European markets. Since the start of 2010, the S&P 500 index has gained nearly 200 percent, while the Euro Stoxx 50 has gained 13.4 percent, followed by the UK's FTSE 100 up just under 11 percent.
One thing is certain, market capitalization only measures the value of the company's equity and does not include debt. US technology stocks also have large international businesses and do not value these shares based on the economic conditions of the United States.
SOURCE: MERDEKA