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Modern Mega Corporations and Their Growing Spheres of Influence

Mega Corporations

In 2022 the financial world will see multiple newsworthy stock splits. Earlier this year on June 6th Amazon split its stock 20-1. A few corporations undergoing stock splits that investors are keeping an eye on are Alphabet (Google), Tesla, and Shopify. Alphabet’s stock split will be a 20-1 split and will take place on July 15th. Tesla’s stock split is not set in stone, but on August 4th its shareholders will vote on a 3-1 split. Shopify just had a 10-1 split take place on June 28th.

What is a stock split?

A stock split is a process by which companies increase the number of shares (stocks) to reduce their prices. For example, imagine there are 100 million shares of stock in a company (call it XYZ) and the price of a single share is $1000. To make this stock more accessible and attractive, XYZ could split its stock by whatever ratio it’d like; for this example, let’s say the company is initiating a 2-1 split. This 2-1 split would cut the price of a single share of stock in half while doubling the total shares of stock. After the split takes place, XYZ would have 200 million shares of stock with a single share being priced at $500. Stock splits are opportunities for new investors to hold stock in these companies at a more reasonable price.

What is the reach of these mega corporations?

What are these corporations and what opportunities will their stock splits create? Below is a list of acquisitions, partnerships, and integrations of each of these corporations. It highlights the depth of influence and the hold that each of these businesses have in various markets.

Alphabet Inc.:

When most people consider Alphabet, their mind goes straight to Google. Google, being one of the most well-known and influential companies in human history, gets its fair share of fame and recognition. However, Alphabet is constantly expanding its market presence and infiltrating new markets through various acquisitions and start-ups.

One way to visualize Alphabet’s structure is to view it as two different segments, one being the traditional Google side of Alphabet and the other being what’s called the “Other Bets” start-up segment. The traditional Google segment includes its main Internet products such as:

    • Ads
    • Android
    • Chrome
    • Hardware
    • Google Cloud
    • Google Maps
    • Google Play
    • Search
    • YouTube
    • Fitbit
    • Mandiant
    • Looker
    • Nest
    • Waze
    • DoubleClick

The “Other Bets” segment consists of businesses that are not involved with Google and are generally considered start-ups. Alphabet is “betting” on or taking a risk on these companies. These start-ups have the potential to be extraordinarily successful and impactful.  Some of these “bets” are:

    • Access
    • Calico
    • CapitalG
    • GV
    • Verily
    • Waymo
    • X

Tesla Inc.:

Tesla is an automotive, energy, and data company that is innovating solutions to the energy crisis that the world faces. With an attempt to rely on different sources of energy rather than traditional fossil fuels, Tesla has differentiated itself from its competitors and the established motor giants.

Telsa has acquired a few companies that it integrates and utilizes to further its mission statement of “accelerating the world’s transition to sustainable energy,” ranging from engineering/manufacturing companies to energy production/innovation companies. Tesla appears to have a strategy of acquiring companies that further its main goal. These acquisitions have given them a huge presence in the sustainable energy market. These acquisitions include:

    • Grohmann Engineering
    • SolarCity
    • Hibar Systems
    • Deepscale
    • Springpower
    • Perbix Machine Co. Inc.
    • ATW Automation SolarCity
    • SilLion
    • Maxwell Technologies

Tesla also produces three energy storage products:

    • Powerwall
    • Megapack
    • Solar Roof

In addition to Tesla, Elon Musk has co-founded other tech companies:

    • SpaceX
    • Neuralink – an ultra-high bandwidth brain data machine that interfaces humans and computers
    • The Boring Company – a tunneling technology construction company.

Shopify Inc.:

Shopify Inc. is a Canadian multinational e-commerce company. Shopify is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. This company allows users to manage and operate their own store while offering templates and payment processing systems.

There have been multiple acquisitions and strategic partnerships that have benefited Shopify over the years. By acquiring software developers, e-commerce platforms, and an influencer marketing startup, Shopify has established itself as a leader in e-commerce. The most relevant of these acquisitions are:

    • Select Start Studios (S3)
    • Tiny Hearts
    • Handshake
    • Jet Cooper
    • Boltmade

Shopify has also used partnerships with social media companies and cross-border payment companies to expand its reach all over the world. These partnerships are with companies like:

    • Google
    • Facebook
    • Twitter
    • Snapchat
    • Alipay
    • JD.com
    • Amazon

These are NOT recommendations, and an investor should consider their timeline, risk tolerance, and financial security before making any investments. Investments are not guaranteed, not insured, and may lose value.

Schedule a meeting with an advisor or visit or Investment Management page to learn more about how we work with our clients.

Sources: The Org, Kamil Franek, Writer’s Block Live, Adobe, FourWeekMBA, Forbes, Industry Leaders Magazine, Tesla

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