Despite big rally, Google is certainly no Apple

“Google’s big rally is still no match for the big Apple,” Steven Russolillo reports for The Wall Street Journal.

“Friday’s surge pushed Google shares above $1,000, making the Internet search giant only the second S&P 500 company to cross the millennium milestone,” Russolillo reports. “Google now has gained 1,090% since it went public at $85 a share in the summer of 2004.”

“Shares of the iPhone and iPad maker [AAPL] have risen by nearly three times as much as Google’s since the day Google went public. Back then, Apple traded at $15.36. It closed Friday at $508.89, good for a 3,213% rally,” Russolillo reports. ” Apple still holds the title of world’s largest technology company as well. The company currently sports a $462 billion market capitalization, tops in the S&P 500. Google’s $336 billion market capitalization ranks third.”

Full article here.

18 Comments

  1. I remember when Steve Jobs introduced the iPhone. In the months after that, BlackBerry stock was skyrocketing because these idiots didn’t understand. I just looked at that and shook my head and said idiots. Time proved that they were wrong about Blackberry. Well they still don’t understand. And they are still idiots, and don’t understand Apple Or Google or the difference.

    1. Google does not make money on Phones, they make money on advertising – like 97% of their revenue is from advertising.

      Start comparing GOOG to Viacom and other media conglomerates that exist buy buying and selling programs, shows, media and ads. Like what if the national spot TV ad market decided to make a smartphone? what?

      1. Like Amazon, Google has higher aspirations than just advertising. They want to own the entire digital experience and in addition, the data pipes. It’s only a matter of time before they start eyeing up content creators (record labels, movie studios, TV networks, etc.) for buyouts if only to test the waters.

  2. Google / Double Click is a huge ad network. That ad network has a ceiling and unlimited competition possibilities in the future. However, the high cost to advertisers of Google’s ad inventory is unsustainable. At $2 – $5/click the cost per customer acquisition can be the full price of a $25 haircut, if 1 out of 5 paid clicks book. Competition, start your motors.

  3. How much of Google’s revenue comes from directly from Safari and Apple users in general?

    It’s a lot, and it’s growing rapidly.

    If it was anyone but Google, we’d hear analysts complaining loudly about a heavy dependence on an large, technically savvy rival who could move into this space with a loyal built-in audience.

  4. Google is an advertising company and does a lot of FREE stuff. Free doesn’t put billions in the bank. And then there is that 32-bit Android OS. In a phone, it may hide the old school reality. But, in a tablet with gaming, corporate apps, … a 32-bit isn’t a racing 64-bit iOS iPad. 32-bit e-book readers will not care. Everyone else will buy a 64-bit iOS iPad device. Apple will take that market back now!

    1. I think Google’s strategy was to use Android to try to suck the life out of Apple’s hardware business. That’s why I’d like Apple to get a search engine and ad click business to do the same to Google as payback.

      Apple could certainly afford to do that much with all the reserve cash it has on hand. Apple could simply build massive server farms overseas with its overseas cash hoard and not even have to be bothered with repatriation tax costs. If Apple used a homegrown iOS search engine they could easily divert a lot of Google’s revenue for themselves.

  5. It’s rather annoying to hear how Apple should be the strongest stock when it has $150 billion in reserve cash and a P/E that’s lower than Microsoft’s, yet when push comes to shove instead of Google or Amazon shareholders getting knocked around, it’s always Apple shareholders who take the biggest beating. It sure wasn’t Google or Amazon shareholders that got kneed in the groin in 2012. Only Apple shareholders took that shot and have been doubled over ever since while both Amazon and Google ran a record 100 yard dash for the gold.

    I’m buying Apple strictly for dividends at this point because the company can’t be trusted to deliver strong earnings like Google or Amazon and even if those stocks deliver mediocre earnings they still go up. With Apple, shareholders hopes rely on a coin flip where even somewhat decent earnings can just as easily send the stock into a nose-dive. I have to stick with Apple because I like their products and I believe in Apple’s consumer-driven goals although that sure hasn’t helped Apple’s share price any.

    1. I agree with most of your post BUT:

      “I’m buying Apple strictly for dividends at this point because the company can’t be trusted to deliver strong earnings like Google or Amazon”

      STRONG earnings vs apple?

      they almost never have strong earnings compared to apple (although I do agree that with your contention that even when they have weak earnings their stock goes up)

      googles income growth is 11%, Apple’s is 60% averaged over the last 4 quarters.

      Amazon last quarter lost 7 million , apple made 6900 million. Amazon’s share climb has nothing to do with earnings but a ponzi scheme boosted by the genius level hyping ability of Bezos.

      The problem with apple stock is Apple’s inability to convince Wallstreet that it’s earnings are real and sustainable that it is not ‘doomed’ (like Forbes, CNBC, CNN, NYT, Wall Street Journal, Zdnet keep repeating) , low P.E means Earnings is Good but PERCEPTION among investors is bad. Cook is a great at many things but he’s not a ‘hype master’ like Bezos or a PR/Marketing genius like Jobs (look at jobs ad campaigns -Think Different, Superbowl, original rock iPod ads etc vs Cooks). Bezos managed to convince big investors that a 7 million LOSS is Wonderful as it didn’t lose more — the stock shot up, Apple can’t convince them that earning 6900 million is good. .

      “I have to stick with Apple because I like their products and I believe in Apple’s consumer-driven goals”. I agree.

    2. “…the company can’t be trusted to deliver strong earnings like Google or Amazon…”

      One of the most clueless statements I’ve ever heard. I truly hope you are not investing large amounts of money. Apple has been, and will continue to deliver record profits.

      On the other hand:

      “As predicted in yesterday’s segment called The Trade, Amazon (AMZN) reported worse than expected quarterly results in regards to EPS. For good measure the company announced they would post weaker than expected results for the current quarter…” – http://finance.yahoo.com/blogs/breakout/amazon-earnings-disappoint-expected-152940878.html

      As for Google while their revenue is up at the moment, “The Mountain View, Calif., company’s average ad price has declined from the prior year in each of the last eight quarters primarily because advertisers aren’t yet paying as much for mobile ads because the screens on smartphones and tablet computers are smaller than on laptop and desktop computers.

      As more people rely on mobile devices to connect to the Web, it’s driving down Google’s average ad price, or “cost per click.” – http://www.latimes.com/business/la-fi-google-earns-20131017,0,2197108.story

      Google has no moat around their business model. Anyone, including Apple could start their own search and advertising business tomorrow. With the increase in mobile (mostly Apple) devices, and the decrease in desktop searches, what would happen to Google if tomorrow Apple announced that their OWN Apple search engine would now be the default on all devices instead of Google’s search?

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