Prediction: These Will Be the 10 Largest Stocks by 2035

Prediction: These Will Be the 10 Largest Stocks by 2035

How in the world can anybody predict the top stocks of 2035?

When developing a potential list, the first thing I did was go backward and look at the top 10 stocks of 2005. They were: 1. General Electric , 2. ExxonMobil , 3. Microsoft , 4. Citigroup , 5. Procter & Gamble , 6. Walmart , 7. Bank of America , 8. Johnson & Johnson , 9. American International Group , and 10. Pfizer .

Many of those stocks have gone sideways or dropped precipitously over the last 15 years. Microsoft is the sole survivor in the current top 10 list. And it’s now the biggest company in the world, with a $2.5 trillion market cap. Apparently, Marc Andreessen was right when he predicted that software will eat the world.

I believe this trend will continue. And the strongest stocks will be those technology leaders that provide services that humanity deems essential. So here are my picks for the top 10 stocks of 2035. Image source: Getty Images. 10. Airbnb (current market cap: $110 billion)

Airbnb ( NASDAQ:ABNB ) is the smallest stock on this list, and it would probably have to go up at least 30 times in value to make the top 10 of 2035. A 40-bagger or a 50-bagger may even be required to make the list. Could Airbnb pull off this magnificent feat?

I’m bullish because Airbnb is going after truly massive markets. The company estimates its total addressable market at $3.4 trillion. Most of your large software companies have much smaller market opportunities.

Airbnb is not selling technology. It’s using technology to allow consumers to visit and stay anywhere around the world. Airbnb is revolutionizing how we travel. And because of the network effect, no other tech company will be able to dislodge it from its catbird seat. 9. Tesla (current market cap: $1.15 trillion)

Tesla ( NASDAQ:TSLA ) is already in the top 10 now. So the question is not whether it can make the top 10 over the next decade and a half, but whether it can stay there. I say it can, because of its dominant mindshare in one of the most important innovations in the 21st century: the electric car.

If you look back from now, one thing that struck me is how important oil was. In 1999, the height of the dot-com bubble, ExxonMobil and BP were two of the biggest stocks in the world. When the financial crisis hit in 2009, two more oil stocks joined their ranks: PetroChina and Petrobras .

All of those stocks have dropped off of today’s top 10. I believe oil will continue to recede in importance, and Saudi Aramco will drop out as well. Meanwhile, Tesla will survive and thrive. 8. Sea Limited (current market cap: $194 billion)

I am perhaps biased in thinking that American companies will continue to dominate the world economy 15 years from now. I am pessimistic on Chinese stocks because the dictatorship in China is incredibly risky for that whole sector. But there is a company that is surviving and thriving in Asia. And that is Singapore-based Sea Limited ( NYSE:SE ).

Sea has a ferocious appetite for growth. Since its initial public offering in 2017, the stock has gone up 20-fold. Sea has led the way with its freemium model in mobile gaming and its No. 1 game for the smartphone, Free Fire .

After establishing a gaming foothold in a new market, Sea introduces its shopping platform, Shopee, and its payments arm, SeaMoney. Sea is dominant not just in Asian markets but is also emerging as a winner in South America and India. This is a beautiful tech stock in emerging markets. And I believe Sea is perhaps the only internet company in the world that can give Amazon ( NASDAQ:AMZN ) a run for its money. 7. Apple (current market cap: $2.45 trillion)

Apple ( NASDAQ:AAPL ) has a heck of a head start over the rest of the stock universe. Airbnb can go up 20 times in value, and it will still be smaller than Apple is today. It would not surprise me at all, however, if Apple were to lose its top 10 spot over the next decade. Apple makes a lot of money off its App Store and all the fees it charges software companies for access. I think it’s likely that Apple will start seeing serious antitrust scrutiny over its business model, similar to what Microsoft saw two decades ago.

Nonetheless, I remain bullish on Apple and its dominance […]

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