“Apple is on the verge of becoming the first $1 trillion publicly listed U.S. company, but even if it gets there, it could soon be overtaken as Amazon.com surges from behind,” Noel Randewich writes for Reuters.
“Started in the garage of co-founder Steve Jobs in 1976, the iPhone maker’s annual revenue has ballooned to $229 billion, greater than the gross domestic product of countries including Portugal and New Zealand,” Randewich writes. “Apple’s market capitalisation on Thursday topped a record $934 billion, following its unveiling last week of a $100 billion buyback budget and news that Warren Buffett’s Berkshire Hathaway dramatically increased its stake in the company. Thanks to a 12 percent rally since its quarterly report last Tuesday, the Cupertino, California company is just 8 percent short of hitting the $1 trillion valuation mark.”
“But Apple is in danger of being beaten to the $1 trillion mark – or passed soon after – by Amazon.com, the second largest listed U.S. company by market value, at $780 billion,” Randewich writes. “Saudi Arabian authorities, meanwhile, have said they expect a planned international initial public offering of Saudi Aramco that would value the national oil producer at about $2 trillion.”
“But if Apple’s stock were to keep growing at the pace seen over the past year, the company’s market capitalisation would hit $1 trillion in September,” Randewich writes. “Amazon would reach $1 trillion around October if its stock price continued to rise at the same rate as the past year, and overtake Apple soon after.”
Read more in the full article here.
MacDailyNews Take: Cough * Apple made more profit in three months than Amazon has generated during its lifetime * cough.
Apple’s P/E ratio is 18.17. Amazon’s is 202.04.
Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued. – MacDailyNews, March 1, 2018
The next ten years are going to be absolutely amazing for Apple. The company has just started to really get going! — MacDailyNews, August 2, 2017
SEE ALSO:
Apple made more profit in three months than Amazon has generated during its lifetime – May 11, 2018
Apple: Why stop at $1 trillion? – May 8, 2018
Apple’s march to become the world’s first trillion dollar company – May 8, 2018
Apple vs. Amazon: Who will win race to be world’s first $1 trillion company? – April 2, 2018
Apple is going to be the first trillion-dollar company – March 1, 2018
Bank of America predicts Apple market value to surge to $1.1 trillion – January 17, 2018
Apple leads race to become world’s first trillion-dollar company – January 3, 2018
Apple is primed to become the first trillion-dollar company – November 24, 2017
Apple: First trillion dollar baby? – August 4, 2017
Why Apple’s market cap is going to $2 trillion – August 2, 2017
Analyst: Apple to become world’s first trillion dollar company within 12 months – July 7, 2017
How Apple’s market value gets to $1 trillion – May 23, 2017
Gene Munster: Why Apple deserves an historic trillion-dollar valuation – May 22, 2017
Analyst sees Apple’s market value at $1 trillion in a year – May 8, 2017
Apple’s path to first-ever $1 trillion market cap – March 7, 2017
Apple on track to become first ever $1 trillion company – February 17, 2017
Bernstein: Apple could be first to $1 trillion market value, propelled by services revenue – Cramer agrees – May 18, 2016
Apple would be worth $1 trillion if market valued it like Steve Jobs-run company – January 4, 2016
Analyst: How Apple’s market value hits $1 trillion in 2016 – November 10, 2015
Annual iPhone Upgrade Program could power Apple to become world’s first $1 trillion company – September 16, 2015
Analyst: Apple at $1 trillion in a year – May 11, 2015
Dream of $1 trillion valuation for Apple slips away – April 17, 2015
Second analyst sees Apple worth $1 trillion – April 17, 2015
Here’s how Apple gets to $1 trillion valuation in just 12 months – March 23, 2015
Apple eyes trillion-dollar market cap – February 24, 2015
Apple’s stock swoon just a blip on its way to being worth $1 trillion – December 2, 2014
Trillion-dollar baby: Can Apple go where company has gone before? – November 24, 2014
Is Apple about to be the first $1 trillion company? Carl Icahn says yes – November 18, 2014
Omega’s Einhorn: Apple’s market value could hit $1 trillion – November 18, 2014
Apple’s market value primed to go to $1 trillion, creating largest company in history – July 3, 2012
Apple at $1,111 per share with a $1 trillion market cap in the next year – April 26, 2012
Piper Jaffray ups Apple price target to $910; sees world’s first trillion-dollar market cap – April 3, 2012
How Apple can reach $2 trillion market value in 2016 – March 16, 2012
Apple: $1 trillion market cap inevitable? – February 21, 2012
Could Apple become world’s first trillion-dollar company? – January 28, 2012
Altucher: Apple will become a trillion-dollar company; $1,000 a share – May 3, 2011
Apple could become first $1 trillion company in as little as 36 months – April 14, 2011
This is what I don’t understand!
Apple’s P/E ratio 18
Amazon’s P/E ratio 202
How does this make any sense?!?!?!?
It’s. Called. Gambling!
If P/E worked faithfully, or any metric, who would lose?
The house always wins. oh, and me.
I always win too, I don’t play.
It’s not for you to understand. It’s for wealthy, big investors to know. Jeff Bezos is worshiped as a living god on Wall Street. He’s the wealthiest man in America by a huge margin. He’s never questioned about how he runs Amazon. Bezos even scares POTUS. POTUS tweets no longer have an effect on Amazon stock at all.
I have never heard Wall Street have any doubts that Amazon will knock Apple out of the top position and go far beyond anything Apple could manage. As far as Wall Street is concerned, Amazon has already beaten Apple as the best investment of all time.
So don’t think of it in terms of sense or logic. Think of it in terms of unlimited growth for Amazon. Think of it in terms of unlimited greed for wealthy big investors. They’re all hoping and praying Amazon will put every other retail company out of business. It’s unlikely the Feds will try to stop Amazon from becoming a monopoly.
So while Apple struggles to sell iPhones and decreases millions of outstanding shares, big investors will be happily buying Amazon shares for $1600, $1700… $2000 and beyond until Amazon breaks that $1T market cap mark. I can already hear the news media howling how Amazon dethroned Apple without a fight and proved that Apple is doomed. There have been so many times in the past analysts have told investors to sell Apple to buy Amazon, so it really won’t come as any surprise that Amazon will surpass Apple in value.
As long as I continue to get my Apple dividends, it doesn’t affect me one way or another. I know Apple could have easily made acquisitions to boost revenue but they chose not to. Apple isn’t Amazon and Tim Cook is no Jeff Bezos. Each company has a completely different business model. Wall Street wants Amazon to win, but I’m not sure what is gained from that. Unless you own stock in Amazon or Apple, what difference does reaching a $1T market cap prove. Bragging rights?
They used to say the same thing about Apple.
P/E ratio is not everything and Apple is a one trick pony all centered on iOS.
Back when Apple stock was not a king’s ransom, every time I suggested Apple to friends, family and co-workers the pushback always centered around P/E Ratio.
When the next big thing comes along and it is not an Apple product they will head down quickly. Tech and the internet are littered with companies that were once the thing.
Have no idea what will eventually supplant the iPhone, but it will come.
The biggest advantage Amazon has is Jeff Bezos- the foinder with vision and fire in the belly. Apple has an apparatchik (Tim Cook) who cleaned up Apple’s supply chain.
Apple doesn’t seem to play to win anymore (just my opinion) but maybe that’s because it has to obey the board of directors. Jeff Bezos just does whatever he wants and takes crap from no one.
The closest thing I could think would replace the iPhone is AppleWatch. If you’ve seen the Netflix movie Anon, whatever they were using for communications is a long, long way off.
Business is gambling. Apple has indeed thrown a few games, just like a slacker in town for kicks. But they are deceptive that way. They don’t seem to care much about the action at your table. Then later you learn they walked off with the jackpot at some other table you never heard of.
This page continues to be infested with spyware, malware, what have you, constantly getting popup viral warnings and ads for BS such as MacKeeper, etc. No, it rarely happens with other pages, regardless of browser. But here, both on Mac OS and the latest iOS app. Not surprising considering the amount of junk crammed into every corner and orifice here. Please clean up your act!
That’s strange. I’m using AdBlockPlus with about 35 custom filters and I never see anything unusual. Certainly, no popups of any kind. However, I’m using SeaMonkey 2.4 on OS 10.6 to access this site, so maybe that’s the reason.
Ad Block Plus & TamperMonkey with Anti Ad Block Killer script.
FWIW your post surprised me—I use Safari, OSX 10.13.4 on a MBPro and iMac, no ad-blocking extensions/viral scanners/etc.; just the “Block Pop-up Windows” checked in Safari Prefs. I have had zero history with anything that you described even though I’ve been reading MDN almost daily for…..a very long time! At least over a decade? No trouble with iOS either.I’m curious what OS/software you are running if y’all are having those issues?
Why watch out for AMZN? Is there not room for 2 Trillion dollar companies. Who cares who gets there first?
Getting there is fine, Amazon being a non-profit is not.
Try Ka-Block! and Adamant. I have a training advertisement and that’s it.
As an investor you have to judge whether you are willing to buy stock at exhibits such high P/E. On one side, the market is saying that Amazon have huge growth and profit potential. On the other side, one could argue that the failure to make significant profits is a big risk and the stock could nose dive if Amazon overstretch and start losing too much on new ventures.
I do own Amazon as part of a large cap mutual fund. That risk is somewhat balance by Apple being a large part of that fund.
As far as popups etc, I use ghostery. Free and works very well.
Amazons P/E is completely out of whack with reality, the company has generated approx 60B in profit over its entire 24 year history, while posting multiple $100+ million losing quarters every year. They also do not report sales figures for their products, but get a pass, and debt finance all of their acquisitions to the point of absurdity. There must be some very interested money in Amazon to keep this bubble inflated, because without this insane seemingly “limitless” growth potential the company would collapse. A 202 P/E is insane for this type of business, it was insane when it was still 33 let alone nearly 7 times that.
Amazon is a bubble. Even if they grow as bis as Walmart (twice the size) they still would only double their profits to what? two billion dollars. Amazon is not worth what it is now. Apple on the other hand is worth more than it is now. Why? They are rewriting the school books of how to run a hugely succesful business. Thank You Tim.
AMZN: Hollow value based upon expected future sales, not profit. Who does that remind me of?