25 Biggest California Companies and Stocks

In This Article:

In this article, we will be taking a look at the 25 biggest California companies and stocks. To skip our detailed analysis, you can go directly to see the 5 Biggest California Companies and Stocks.

California is not just the most populous state in the U.S. with over 39 million residents, but it is also the largest economy in the U.S., with its 2021 GDP worth over $3.4 trillion. Texas is the next biggest with a GDP of just over $2 billion, which shows how wide the gap between the first and the second biggest state is. Just for some perspective on how truly large the economy of California is, it is the biggest subnational economy in the world. If California was a country, it would be the 4th largest economy in the world, surpassed only by China, Germany and Japan!

25 biggest California companies and stocks

stellamc/Shutterstock.com

California is home to Silicon Valley which is considered to be the technological hub of the world, with many of the biggest tech companies in the world headquartered there, including some of the biggest California companies and stocks. More than 30 businesses in the Fortune 1000 are headquartered in Silicon Valley not to mention thousands of startup companies which are headquartered in the region to take advantage of the wealth of talent not to mention venture capital. After all, around a third of the total venture capital fund in the U.S. is spent in Silicon Valley.

Of course, the tech industry isn't the only industry in the state worth over $3.4 trillion. Finance, manufacturing and business sectors are all important contributors to the economy of California while its agricultural output is the highest of any state in the country. Some of the biggest media companies are also located in the state, which shouldn't be surprising. After all, Los Angeles, home to Hollywood, is also located in California. Overall, unemployment in the state is at 4.1%, an increase of 0.1% from October despite almost 27,000 nonfarm payroll jobs being added. However, the state is in a much better situation compared to November 2021 when the unemployment rate was 5.8%.

Of course, it isn't all doom and gloom for companies in California as the state does provide several financial incentives for businesses including consulting and low-cost training pertaining to loans and grants, startup business plans, strengthening operations and entering new markets among others. While taxes are comparatively high in the state, companies are also provided tax incentive programs which are presented to encourage innovation, development and growth.

California is a Democratic state, and unlike most Republican states, it imposes high taxes on corporations to derive revenue that is used to fund the state's budget. Because of this difference in tax rates, many companies have started to move their headquarters from California, with perhaps the most recent high profile move being Tesla, Inc. (NASDAQ:TSLA), which moved its headquarters to Texas from California, something that Elon Musk had been threatening for a while. According to a report from the Hoover Institution, the rate of companies leaving California in 2021 was twice that of 2020 and 2019, and three times that of 2018, which includes 11 Fortune 1,000 companies. With costs being exceptionally high in the state, many other companies might follow suit in a bit to reduce costs.