U.S. technology companies remain the largest companies in the world. Data at the start of 2022 affirm their absolute dominance, with Apple, Microsoft, Alphabet (Google), and Amazon being the most highly valued on the stock market.
The power of large companies has grown, despite the side effects left by the coronavirus pandemic on the global economy. The value of the top ten companies with the highest stock market value in 2021 was 13.35 trillion euros, an increase of 11.6% compared to 2020.
Amazon is one of the companies that has grown the most on the stock market since its entry approximately 20 years ago. Its initial value was $660 million and now its shares exceed $1.8 billion.
In this scenario, the permanence of technology companies at the top of the stock market is based on a single factor: the value of the brand. This intangible asset is key to a company’s positioning, as it produces a differential effect on its products or services depending on consumer perceptions.
For this reason, brand equity is the most valuable index a company should have. This has been considered by technology giants, who have built their brands through excellence in consumer experience, product quality, and branding appeal.
Brand equity builds consumer and investor confidence
For companies, brand equity is essential to generate trust, both in consumers who require the best option to solve their needs and in investors who enter the stock market to seek financing with the best return on investment (ROI).
This trust is generated by the fulfillment of the promises made in the branding of a brand, which creates a good image that is associated with the products or services, improving sales substantially. Therefore, a good brand is one that offers a unique image that conveys an emotional bond with its consumers.
The brand, being the crucial element that links with the consumers, gives a unique prestige that allows the company to be listed on the stock exchange and thus increase its value.
This is a procedure applied by the largest technology companies such as Apple, which managed to become the leading brand by brand value while being named the company with the highest stock market value worldwide at the beginning of the year 2022.
Brand value plays an important role in the stock market
Apple, Microsoft, Alphabet (Google), and Amazon are well-known brands that have become attractive companies for investors in the stock market. This is because their great performance in consumer society makes them become companies with a high growth trend and a great resistance to unforeseen events such as inflation.
The stock market, due to these conditions, has become the best place for these large companies to attract investments since they benefit from the power of their brand in their search for financing for new projects.
Even the power of its brand act as a support to obtain financing to enter other sectors, as is being planned by the Ecuadorian business group Daxsen, which leads in the sectors of entertainment, marketing, and luxury services, and now will seek to be a benchmark in digital banking with its project Daxsen Bank.
According to what is known so far, Daxsen plans to attract investors in the stock market with benefits such as participation in the bank’s board of directors, a credit card with an open quota available 24/7 for representation expenses, consumption in Bitcoins or Cash, direct access to its international investment division and business development for personal projects and investments, and special conditions for loans.
The business conglomerate will try to replicate the model of the largest technology companies to launch this digital bank that promises to be a disruptive solution to the high operating costs of traditional banking and its transactional products.