North American Metropolitan Areas: Official Corporate Expansions & Headquarters Relocations Thread (purchase, calculated)

[SanJac]

Originally Posted by 18Montclair

F500 ranks companies by sales revenue, which is neat, but I prefer market cap rankings.

Why do you prefer market cap? Potential earnings vs. actual revenue? Or do you believe a higher market cap is more indicative of a healthy balance sheet + potential earnings? Thanks...serious question...

[whereiend]

Originally Posted by NoHyping

I also noted fear of unions never ends. Right to Work states give a company far more comfort from being Unionized. Most are Professional Unions today anyway. Not warehouses or supermarkets etc. Higher wages and some always not how winters are up north..... I did not say you personally on Cali. That was generally on C-D a lot. I noted how Elon Musk will have a minimum wage of $15.00/hr in Texas.... in Detroit it is nearly $19.00/hr for GM.

Competing is not on a common Government set every state the same scale. Each state is different and even cities in wages, taxes, regulations and many more that are seen as more costly currently to be in. Will that last forever without cost rising in current cheaper cities? Time will tell.

Austin has a substantially higher cost of living than Detroit and less crime and poverty. The idea that it's "cheaper" is interesting. Perhaps something about the way things are done up in Detroit is broken?

[Gaylord_Focker]

Can Texas catch California by 2024?

[As Above So Below...]

Originally Posted by Gaylord_Focker

Can Texas catch California by 2024?

Whether were talking GDP or population, no.

[ParaguaneroSwag]

Originally Posted by Gaylord_Focker

Can Texas catch California by 2024?

By Fortune 500 companies? Probably

[mhays25]

Originally Posted by SanJac

Why do you prefer market cap? Potential earnings vs. actual revenue? Or do you believe a higher market cap is more indicative of a healthy balance sheet + potential earnings? Thanks...serious question...

Sales don't mean much either. For a while my city's largest headquarters was Costco based on sales. But retail is a very low-margin business. They earned about 2% profit last year...not bad for retail but nothing like cross-town rivals earning several times that much in both percentage and real terms.

[TheseGoTo11]

Texas is where companies move to, not where they start. Its venture capital numbers are shockingly low, and even during COVID, a fraction of California's. I'm the last person to defend Newsom and the awful state government in California, but Texas needs a lot more of its own startups to develop a more appealing economy for high earners in the business side of tech. To date, California's stupidity is costing it tax revenue, but not new startups.

[18Montclair]

Originally Posted by SanJac

Why do you prefer market cap? Potential earnings vs. actual revenue? Or do you believe a higher market cap is more indicative of a healthy balance sheet + potential earnings? Thanks...serious question...

all of that...I like to see where the world is investing it's money...

Just in case anyone isnt sure what market cap is, here is investopedia's definition:
Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share.

This fluctuates daily and can fluctuate wildly because of speculation, earnings reports, even daily news events can trigger a stock to either soar or sink. Anyhow...

US' Market Cap Ranking as of Dec 21,2020(and HQ Metro)
1 Apple.................................$2.192 Trillion(San Jose)
2 Microsoft.............................$1.682 Trillion(Seattle)
3 Amazon..............................$1.608 Trillion(Seattle)
4 Alphabet.............................$1.174 Trillion(San Jose)
5 Facebook............................$777.0 Billion(San Francisco)
6 Tesla..................................$616.0 Billion(San Jose)
7 Berkshire Hathaway.............$526.1 Billion(Omaha)
8 Visa...................................$488.5 Billion(San Francisco)
9 Walmart..............................$413.0 Billion(Fayetteville, AR)
10 Johnson & Johnson.............$402.8 Billion'(New York)
11 JPMorgan Chase.................$376.6 Billion(New York)
12 Proctor & Gamble............,..$339.6 Billion(Cincinnati)
13 Mastercard.........................$333.3 Billion(New York)
14 NVIDIA..............................$330.1 Billion(San Jose)
15 UnitedHealth.......................$318.9 Billion(Minneapolis)
16 Disney...............................$309.0 Billion(Los Angeles)
17 Home Depot.......................$291.7 Billion(Atlanta)
18 PayPal................................$278.5 Billion(San Jose)
19 Bank of America..................$257.3 Billion(Charlotte)
20 Verizon...............................$246.2 Billion(New York)
21 Adobe................................$246.2 Billion(San Jose)
22 Netflix................................$233.7 Billion(San Jose)
23 Comcast.............................$230.5 Billion(Philadelphia)
26 Coca-Cola...........................$226.9 Billion(Atlanta)
27 Nike...................................$226.1 Billion(Portland)
28 Pfizer.................................$207.8 Billion(New York)
29 Salesforce..........................$207.3 Billion(San Francisco)
30 AT&T.................................$206.7 Billion(Dallas)
31 Pepsi..................................$200.9 Billion(New York)
32 Merck.................................$200.6 Billion(New York)
34 Abbott Laboratories..............$191.6 Billion(Chicago)
35 Intel...................................$190.0 Billion(San Jose)
36 Oracle.................................$189.8 Billion(San Francisco)
37 Cisco Systems......................$189.6 Billion(San Jose)
38 Themo Fisher Scientific..........$183.5 Billion(Boston)
39 AbbVie................................$183.1 Billion(Chicago)
40 ExxonMobil..........................$177.4 Billion(Dallas)
41 Broadcom............................$173.5 Billion(San Jose)
42 Qualcomm...........................$166.0 Billion(San Diego)
42 Chevron...............................$165.7 Billion(San Francisco)
43 Costco Wholesale..................$161.7 Billion(Seattle)
44 T-Mobile USA........................$161.6 Billion(Seattle)
45 Eli Lilly.................................$161.5 Billion(Indianapolis)

Among the top 45, a breakdown by the top 3 areas as of yesterday at closing was like this...
Bay Area $6.959 Trillion
Seattle $3.612 Trillion
New York $1.964 Trillion

[manitopiaaa]

With 2020 over, I decided to look at the geographic distribution of North America's "mega" cap corporations ($50b+ market capitalization) by headquarters. These are the ones we should be closely monitoring for 2021 relocations imo.

North America has 152 mega cap companies, 145 in the United States and 7 in Canada. Mexico has 2 companies right on the cusp (Walmex at $49b and America Movil at $49b), but misses the cusp. Maybe next year.

These 152 companies have a market cap of $27.06 trillion. 97.7% is in the USA. 2.3% is in Canada.

To be clear, these companies are grouped based on the location of their headquarters, aka where high-level executive decisions are made (where CEO/President/Chairman/Board/executive management generally resides). Of course, these companies have multinational operations and their workforce is spread throughout.

---

Some thoughts:

• The U.S. gained $5.586 trillion in mega cap market value. Canada gained $97 billion. North America gained $5.683 trillion total.
• The West Coast had a banner year due to COVID pandemic and general inertia. With 56.6 million people (of North America's 580 million, or 9.8%) it is now home to 46 companies who combined have 52.4% of North America's mega cap market value. Last year, these 145 companies had a market cap of $21.4 trillion, and the West Coast had 42.4% of the share. So the West Coast captured 10% of the mega cap "market share" in one year.
• Mega cap market value increased by 26.79% in the United States and 18.34% in Canada. In both cases, the increase was due to tech growth. In Canada, Shopify's growth alone makes up nearly the entirety of Canada's growth. Shopify went from not being mega cap ($46b) on January 1, 2020, to having a market cap of $137 billion a year later, or 198% growth. If you exclude Shopify from Canada's listing, Canada's mega cap only grew by 1.24%, showing how countries without competitive tech industries will fall behind in the coming decade. If Shopify can continue to grow in the coming years, it will do wonders to shift Canada's mega cap value away from dying industries.
• The same tech shift was noticeable throughout the U.S. The West Coast's mega cap market value increased by a whopping 52.9% from $9.067 trillion to $13.863 trillion. Tesla alone added $593 billion of market capitalization, or nearly the entire mega cap value of Canada. The rest of the U.S. had mixed growth. The Great Lakes and Southeast had 12.75% market cap growth and 12.80% market cap growth, respectively. The Northeast, heavy on traditional industries and finance, only grew by 4.56%. The Southwest declined by 5.32% due to the oil shock and Exxon's market cap collapse.
• Of the 7 North American companies among the Top 10 globally, we have the following growth:
  • Alphabet: +$264 billion market cap growth
  • Amazon: +$714 billion market cap growth
  • Apple: +$968 billion market cap growth
  • Berkshire Hathaway (the only non-tech): -$8 billion market cap growth
  • Facebook: +$193 billion market cap growth
  • Microsoft: +$482 billion market cap growth
  • Tesla: +$593 billion market cap growth
  • TOTAL: +$3.206 trillion
• As the numbers above show, the 7 companies above grew by $3.206 trillion. So these 7 alone account for 57.4% of the U.S. gain, and 56.4% of North America's. They also account for 67% of the West Coast increase just due to sheer size, even if smaller tech companies had much better percentage growth rates than all but Tesla.
• Two companies IPOd straight into mega cap territory: Airbnb and Snowflake. Both are seriously overvalued and I can't imagine them sustaining those levels.
• If 2021 is a year of recovery, I could also see a correction, with money being pulled from the safety of big tech back into traditional industries. So next year's snapshot might be far less imbalanced than the +53% West Coast, +5% Northeast dynamic we had this year.
• HQ relocations are a big question mark. This year alone, Charles Schwab and Oracle moved their HQs to Texas (though the former's isn't final final until January 21). If Paypal or Tesla move to Texas in 2021, the West Coast dominance could be reduced even further.

('Open in New Tab' if the numbers are too small. It's a big pic.)


Happy to hear if anything else jumps out!

[Boston Shudra]

Originally Posted by manitopiaaa

Happy to hear if anything else jumps out!

Could you explain in a bit more detail what market cap is for us laymen?

Also I'm trying to find a pattern as to which biotech/pharma companies grew or shrunk. I'm surprised by Pfizer's -5% considering the covid vaccine.