10 Most Valuable Companies Worth 12% of Global GDP in 2020Door Justinas Baltrusaitis 14, december 2020 | Last Updated: 14, december 2020 With the stock market making key gains this year amid the pandemic, the market capitalization of some public companies is soaring to new highs. As a result, the cumulative market capitalization of these companies occupies a significant share of the global Gross Domestic Product (GDP). Data presented by Bankr indicates that the top ten most valuable companies based on market capitalization are cumulatively worth $10.06 trillion as of December 13, 2020. The figure represents about 11.93% of the $84.27 Covid-19 adjusted 2020 global GDP. Apple is the most valuable company with a market capitalization of $2.09 trillion or 2.48% of the global GDP. Taiwan Semiconductor Manufacturing Company Limited is the tenth most valuable company with a market capitalization of $0.47 trillion. Tech companies lead most valuable firms The companies represent relatively new, faster-growth industries and mature ones ranging from e-Commerce and tech. While each of these companies has witnessed its business shift due to the pandemic, some continue to thrive due to their unique advantages that were leveraged during the pandemic. From the data, United States technology companies dominate the most valuable brands globally. The top five companies saw their stock soar in 2020 during the pandemic. The brands were used as a means of navigating the pandemic as most people opted for technology solutions to work remotely, learn, and keep entertained. Due to the companies’ ability to offer solutions during the pandemic, their stock rallied, indicating a sign of investor confidence amid economic turmoil. It is worth mentioning that the share of the most valuable companies compared to the global GDP could be lower were it not for the effects of the pandemic. The health crisis inflicted high and rising human costs worldwide, and the necessary protection measures severely impacted economic activity. As a result of the pandemic, the global economy contracted. When comparing growth, the overviewed companies have witnessed rapid growth, unlike the global economy. However, the global economy is now recovering, especially with the rollout of the coronavirus vaccine. Notably, the rally of the global economy was led by overviewed companies that saw their stocks soar to new historical highs. For instance, electric vehicle manufacturer Tesla stock has rallied by over 600% on a year to date basis. In general, the top ten most valuable companies were not adversely impacted by the pandemic. Most prominent players in e-Commerce including Amazon and Alibaba – have experienced growth due to the rise in online shopping. Concerns over the dominance of small corporation in the global economy To maintain their market capitalization and challenge the global GDP, the companies have focused on several strategies like the diversification of their products. Additionally, they are multinationals, an aspect that has given them a unique market advantage. Multinationals can shift production from one plant to another as market conditions change something that has enabled them to maintain a grip over the global economy. It is worth mentioning that the largest corporations continue to occupy a significant share of the global GDP as emerging market economies have struggled to grow in the last few years. Of major concern, is their spreading global influence that has come with concerns. For example, Facebook’s plan to launch its currency has been met with objections. Additionally, some companies continue to invest more in political lobbying. It will be interesting to see how this influence will impact their market capitalization and the global GDP share.