The most valuable brands in the world are overwhelmingly tech names…and American


U.S. tech stocks may have posted their worst performance in seven months in June, but they are still among the top dogs when it comes to brand power.

The latest ranking from WPPs Kantar Millward Brown shows that the elites of the most valuable brands in the world are mostly tech companies, and overwhelmingly American.

For the second year in a row, Google GOOG, -1.10% GOOGL, -1.10% is the most valuable brand with a price tag of $245.6 billion, followed by Apple Inc. AAPL, -0.36% with $234.7 billion, and Microsoft Corp. MSFT, -1.10% at $143.2 billion. Amazon.com Inc. AMZN, -1.48% jumped to fourth with its value soaring 41% to $139.3 billion, while Facebook Inc. FB, -1.69% retained the fifth spot for a second year with $129.8 billion and AT&T Inc. T, +1.01% fell two notches to sixth, with a value of $115.1 billion.


Visa Inc. V, -0.46% was seventh with $111 billion and Tencent Holdings Ltd. 0700, -3.63% , a Chinese internet company and the first non-U.S. name to make the top 10 list since 2013, jostled its way to eighth with $102.1 billion. Silicon Valley pioneer IBM IBM, +1.14% traded places with McDonalds Corp. MCD, -0.43% moving up to ninth with $102.1 billion while the fast-food giant slipped to 10th with $97.7 billion.


In contrast to other surveys, which measure a brand value based on a single criteria such as market capitalization, the research firm uses several metrics for its list, including a companys ability to persuade a consumer to choose its product and pay a premium for it.

In 2017, the cumulative value of the top 100 brands grew 8% year-over-year to $3.6 trillion, and their stocks surged 124.9% between April 2006 and April 2017, far outstripping both the S&P 500 SPX, +0.23% and the MSCI World Index during the same period, according to Kantar Millward Brown.


Kantar Millward Brown


In a testament to Americas soft power and economic influence, U.S. companies claimed more than half of the top 100 spots, with 54, accounting for 71% of the lists value.

Technology firms, including telecom providers and e-commerce companies, clearly dominated the list, checking in with 37 brands for 54% of the lists total value. In fact, Apple and Google, the two most expensive names in the world, are together worth as much as Swedens economy, while the seven newcomers this year are all tech related YouTube, Hewlett Packard Enterprise Co. HPE, +0.48% Salesforce.com Inc. CRM, -0.58% Netflix Inc. NFLX, -2.17% Snapchat SNAP, -1.01% Xfinity CMCSA, -1.44% and Sprint Corp. S, -0.73%


Kantar Millward Brown


There is also a generational shift. Top brands are getting younger, with the average age of the big 10 falling to 42 years, from 88 in 2006.

Only three brands have survived the ravages of time. In 2006, the top 10 were Microsoft, General Electric Co. GE, +1.63% Coke KO, -0.20% China Mobile Ltd. 0941, -1.03% , Marlboro PM, -0.47% Walmart WMT, -0.42% Google, IBM, Citigroup Inc. C, +2.06% and Toyota Motor Corp. TM, +0.96%


Kantar Millward Brown


The evolution of the BrandZ Global Top 10 over the past 12 years reflects the dominance of technology and the disruptive impact of the global financial crisis, technological innovation and changing consumer attitudes about health, said Kantar Millward Brown in its report.

Indeed, the landscape is likely to further change in the coming years, with values of brands like Tesla Inc. TSLA, -2.49% ($5.88 billion) and Morgan Stanley MS, +2.36% ($8.92 billion) surging through the ranks.