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Chart: One Reason a Brexit Makes Sense

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Chart: One Reason a Brexit Makes Sense

Chart: One Reason a Brexit Makes Sense

The UK escapes a swath of troubled loans and fiscal problems.

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Economic authorities and pundits have been vocal about the potential economic consequences of a Brexit.

The Bank of England said a “Leave” vote would increase unemployment, stoke inflation, slow economic growth, and prompt consumers and businesses to delay spending. The results would be recessionary.

The IMF warned that leaving the EU would cause “severe regional and global damage” for years to come.

The main argument here is that a lack of access to the single market will hurt the UK economy, and this could prove to be very true in time.

Market, Schmarket

While keeping economic ties to the single market is an important point to consider, the UK also gains a distinct advantage from maintaining a further distance from parts of the EU ecosystem.

Why? Because parts of Europe are still an economic mess, and things aren’t getting better. Just look to the recent banking mess in Italy and non-performing loans (NPLs) as an example.

Historical NPLs (Data from IMF)
Historical NPLs according to IMF

Italian banks are currently being crushed by €360 billion in non-performing loans. According to the European Banking Authority, they make up 16.9% of all lending as of March 2016, and are unlikely to be paid in full. As a result, bank stock prices in Italy have plummeted.

Banca Monte dei Paschi di Siena, Italy’s third-largest bank by assets, is now trading for €0.31, which is a mere 15% of its 52-week highs at €2.04. UniCredit, the country’s largest bank with just under €1 trillion in assets, is trading at one-third of what it was worth a year ago.

To help solve the disaster, the ECB’s Mario Draghi is now backing a public bailout of Italy’s banking sector.

Outside of Italy

Portugal has a similar banking crisis brewing. Non-performing loans have mounted to 18.5%, and Prime Minister Antonio Costa is also publicly looking for a solution to help Portuguese banks.

Even Germany, which is typically rock-solid, has its own banking issues. As we covered a couple of weeks ago, the country’s largest bank, Deutsche Bank, has seen its value collapse as it has been engulfed by scandals, record losses, missed stress tests, and poor planning.

While access to markets is important for the UK, keeping a distance from flailing European banks also seems like it could be a wise choice in the long run as well.

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AI

Ranked: The 20 Biggest Tech Companies by Market Cap

In total, the 20 biggest tech companies are worth over $20 trillion—nearly 18% of the stock market value globally.

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A portion of the top 20 biggest tech companies visualized as bubbles sized by market cap with Apple as the biggest.

Ranked: The 20 Biggest Tech Companies by Market Cap

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The world’s 20 biggest tech companies are worth over $20 trillion in total. To put this in perspective, this is nearly 18% of the stock market value globally.

This graphic shows which companies top the ranks, using data from Companiesmarketcap.com.

A Closer Look at The Top 20

Market capitalization (market cap) measures what a company is worth by taking the current share price and multiplying it by the number of shares outstanding. Here are the biggest tech companies according to their market cap on June 13, 2024.

RankCompanyCountry/RegionMarket Cap
1AppleU.S.$3.3T
2MicrosoftU.S.$3.3T
3NvidiaU.S.$3.2T
4AlphabetU.S.$2.2T
5AmazonU.S.$1.9T
6MetaU.S.$1.3T
7TSMCTaiwan$897B
8BroadcomU.S.$778B
9TeslaU.S.$582B
10TencentChina$453B
11ASMLNetherlands$415B
12OracleU.S.$384B
13SamsungSouth Korea$379B
14NetflixU.S.$281B
15AMDU.S.$258B
16QualcommU.S.$243B
17SAPGermany$225B
18SalesforceU.S.$222B
19PDD Holdings (owns Pinduoduo)China$212B
20AdobeU.S.$206B

Note: PDD Holdings says its headquarters remain in Shanghai, China, and Ireland is used for legal registration for its overseas business.

 

Apple is the largest tech company at the moment, having competed with Microsoft for the top of the leaderboard for many years. The company saw its market cap soar after announcing its generative AI, Apple Intelligence. Analysts believe people will upgrade their devices over the next few years, since the new features are only available on the iPhone 15 Pro or newer.

Microsoft is in second place in the rankings, partly thanks to enthusiasm for its AI software which is already generating revenue. Rising profits also contributed to the company’s value. For the quarter ended March 31, 2024, Microsoft increased its net income by 20% compared to the same quarter last year.

Nvidia follows closely behind with the third-highest market cap, rising more than eight times higher compared to its value at the start of 2023. The company has recently announced higher profits, introduced a higher dividend, and reported that its next-generation GPU chip will start generating revenue later this year.

AI a Driver of the Biggest Tech Companies

It’s clear from the biggest tech companies that involvement in AI can contribute to investor confidence.

Among S&P 500 companies, AI has certainly become a focus topic. In fact, 199 companies cited the term “AI” during their first quarter earnings calls, the highest on record. The companies who mentioned AI the most were Meta (95 times), Nvidia (86 times), and Microsoft (74 times).

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