Potential American Monopolies

By | November 13, 2017

Google Inc. (NASDAQ: GOOG) is the dominant search engine in the U.S market, with a market share of over 65%. With Google web search engine, uses can search for the information through the use of operators and keywords. Google dominates the technology market. However, it is hard to find a company to have a true monopoly in any market. Its popularity depends on geography and brand recognition. Let’s consider whether the following American companies will become monopolies in the future.

 

SIRIUS XM Radio Inc. (NASDAQ: SIRI) is projected to have revenues of $ 2.83 billion in 2010, approximately $ 3.1 billion in 2011 and over 20 million subscribers at the end of 2010. Sirius Satellite Radio and XM Satellite Radio announced a merger three years ago. The merger brought the combined companies a total of over 18.5 million subscribers. Stockholders of each company retain nearly 50% of the joined company after the merger.

 

Monopoly in satellites

 

Netflix, Inc. (NASDAQ: NFLX), which offers flat rate DVD and Blu-ray Disc rental-by-mail and on-demand video streaming over the internet, is projected to have over 19 million subscribers this year-end. Its growth explosion may take place in the next years. Its biggest risk is the movie studios. In August 2010, Netflix reached a $ 1-billion deal to stream movies from Lionsgate, Paramount, and MGM. Netfix reached agreements with Universal Studios and Twentieth Century Fox in April 2010.

 

Streaming movies, future rental monopoly

 

Fair Isaac Corp. (NYSE: FICO) has a market capitalization of just under $ 1billion. It is projected to have revenues of around $ 623 million next year.

 

A near monopoly in credit scoring

 

American Water Works Company, Inc. (NYSE: AWK) is the largest public U.S. water and waste water utility. As of December 31, 2009, it served approximately 16 million customers with wastewater, drinking water, and other water-related services in 35 states and two Canadian provinces.

 

With a $ 4.3 billion market capitalization, American Water Works Company is the largest by market capital of its water utility brethren.

 

Monsanto Co. (NYSE: MON) is the world’s leading producer of the herbicide glyphosate.

 

Molycorp Inc. (NYSE: MCP), owner of the world’s largest non-Chinese deposit of rare-earth metals, has $ 3 billion market capitalization. Its IPO is one of the top performers of 2010. It has been on an upward trend since its initial trading at the end of July.

 

A potential domestic monopoly

 

 

Related links:

Monopoly And Oligopoly Markets

Competitive Markets, Monopolies & Oligopolies

Getting Out Of The inevitable Monopoly Mindset

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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