Apple crushes Amazon as stock to own

“Amazon (AMZN) and Apple (AAPL) recently reported numbers that not only beat, but far exceeded the expectations of all but the biggest bulls,” Robert Weinstein writes for The Street.

“Both companies reported higher top and bottom lines, and both trade for over $200 per share. There are many other similarities, for example, both sell digital content and the hardware to consume digital content. Both sell third-party content as well. Both companies have a worldwide marketing footprint and are household names,” Weinstein writes. “Amazon and Apple have the resources available to dominate most spaces they wish to enter.”

Weinstein writes, “However, the similarities end quickly once you lay financial pages next to each other. Apple is more than five times more valuable by market cap than Amazon… Keep in mind that both companies just reported what was received as “strong” earnings, but in the last 12 months Apple produced $41 in earnings per share, while Amazon made $1.37. Apple’s profit was 30 times greater than Amazon. If you bought one share of Apple and your neighbor bought one share of Amazon, you can take your neighbor to lunch and he can’t even take care of the tip.”

Read more in the full article here.


  1. This numb nut, Weinstein, bashed Weezy Miyagi’s interesting post on China and how big the market potential for Apple is, on Seekingalpha, do we really need to give him more hits? Of course, Weinstein created a straw man argument by making up something Weezy did not say.

  2. He’d have made his comparison easier, if he had not compared EPS, but rather, how many billions did they make. Apple made $11.62B, and Amazon made $0.13B. To Apple, Amazon is a rounding error.

  3. EPS is a POS metric when comparing companies to each other. It’s dependent on the number of shares. You can use it to measure a company over time provided you build in the appropriate adjustments for change in shares, but comparing two companies like this is like comparing $10 to 100 rubles and saying the rubles is more because 100 > 10

  4. How are people like Robert Weinstein allowed to author pieces like this filled with such blatant ignorance?

    Last quarter, Amazon earned $130 million. Apple earned $11.6 billion. That means Apple earned NINETY times more than Amazon did. Yet Wall Street values Apple at only 5.5 times more than Amazon.

    It’s because of idiots like Robert that people still don’t understand the concepts of shares outstanding, market cap, earnings, and growth.

    The ignorant investor reads articles like this and becomes stupider because of the crap contained within.

    1. Could this be a deliberate disinformation campaign on the part of Wall St. “pros” to 1) keep the common man confused and reliant on them for “advice”, and 2) make the common man an easy mark for their market manipulations?

  5. And yet, Amazon’s P/E is over 165 and Apple’s is under 15. Life isn’t fair and neither is the stock market. If Apple had the P/E of Amazon, Apple’s stock would be worth $6,800 per share.

    1. Amazon doesn’t make $hit for profit but the street loves them. I have no idea why with a P/E of 165+ and maybe someday they will figure this out, or not. I won’t own it, I expect the companies that I own stock in to show a profit and/or grow.

      Amazon is leading in the race to the bottom and we all know how that model works, ask Mikey!

  6. What is worse, is 21 cents of the 28!they suppossedly earned came from an accounting gimmick.

    Amazon has equity I living social. Living social diluted the shares. Amazon equity fell. Amazon uses an accounting gimmick which allowed them to readjust the share of losses that living social had to the tune of 84 million post tax.

    Amazingly not one annal brought this up at the CC. None have brought it up in any venue. Living social did not even earn money. Amazing chutzpah.

  7. How on God’s green earth can so many smart people be in love with AMZN?

    Their operating income was about $190 million, yet the stock added over 70x that ($14 BILLION) in market cap today.

    And the company themselves admitted that they will probably lose money next quarter.


    1. “How on God’s green earth can so many smart people be in love with AMZN?”

      Apple went through a period of low profit 10 years ago, whilst they started building their online strategy, their retail strategy, and branching out from their core Mac based product line. Look where that ended up.

      When investors see that a company has a strategy that could make a lot of money in the long run, they will take the gamble and back them. Amazon have a strategy, both in Cloud services and in the post-retail world of delivering content directly to consumers. That’s why investors believe in them enough to buy the stock.

  8. Apple is the stock analysts love to hate. I prefer it that way. If they start saying apple will dominant for ever then it’s time to worry.

    Back in 1999, economic pundits were saying the boom would last forever.

    In 2004, it was claimed the housing market would continue to rise.

    If the analysts start pumping apple then I know the best is behind us.

  9. “but in the last 12 months Apple produced $41 in earnings per share, while Amazon made $1.37. Apple’s profit was 30 times greater than Amazon.”

    You mean selling for a loss doesn’t pay off as well as working to make a real profit? Surprise, surprise!?!

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