Alphabet Inc. close to snatching Apple’s crown as the world’s most valuable company

“Apple has been considered the world’s most valuable company since 2013 when it surpassed Exxon Mobil in market capitalization, but that status is now threatened by Alphabet, Google’s new parent company,” Alice Truong writes for Quartz.

“With a market cap of $542.5 billion, Apple still has a $47 billion lead,” Truong writes. “But with earnings on the horizon — Apple is set to report its results on Jan. 26 and Alphabet on Feb. 1 — it’s possible a new company might end up at the top.”

“That scenario would likely depend on an earnings miss from Apple and better-than-expected results from Alphabet,” Truong writes. “How likely is that? Not very: Consider the fact that Apple’s holiday quarter in 2014 was its biggest quarter ever.”

Read more in the full article here.

MacDailyNews Take: Imagine if they had equal P/E ratios.

Now for the rest of the story:

Revenue
• Alphabet: $71.76 billion
• Apple: $233.70 billion
(trailing 12-month value as of September 30, 2015, US dollars)

Profit
• Alphabet: $16.48 billion per year
• Apple: $53.39 billion per year
(trailing 12-month value as of September 30, 2015, US dollars)

Which company is more valuable?

SEE ALSO:
Is Alphabet Inc. about to dethrone Apple as the world’s most valuable company? – January 14, 2016
Apple could soon lose its place as world’s most valuable company to Google – January 13, 2016
Apple regains ‘World’s Most Valuable Company’ crown – August 1, 2013
Apple overtakes Exxon Mobil as world’s most valuable company – August 9, 2011

22 Comments

  1. This is sheer insanity. The whole of the ad business is not worth that much and Google has only a fraction.

    This is all about churn and cheap money from the Federal Reserve driving carry trades. Soon all that money will zip around to other companies.

  2. “That scenario would likely depend on an earnings miss from Apple and better-than-expected results from Alphabet”

    Nonsense. History has shown that more often than not, Apple *blowing past* earnings projections results in a stock value *loss* due to asshole traders and analysts focusing on negative growth by a single line item (iPads, usually) even though everything else is up YOY.

  3. Google is not even close in the amount of money it makes compared to Apple. There stock price is way over priced compared to the amount of business it does. Apple is way under valued do to the constant drum of doom and gloom by anal-Ists with absolutely no facts to back it up.

    1. It’s all about mindshare, not market share or profit. Google is the darling of wall street, Silicon Valley and all of the youngsters these days. Personally, I’d like to see Google become the most valuable company- it seems like that’s the only way Google will be scrutinized to any substantial degree.

  4. It shouldn’t really matter to Apple shareholders whether Apple has the highest market cap or not. It only matters to me that Apple gives out a decent dividend and the share price goes up at least relatively to other tech companies in the tech sector. I was happy to see Apple at the top but no company can stay there forever. It’s nice to have bragging rights for a while but it hasn’t helped Apple shareholders one bit with Apple being at the top. Apple hasn’t gotten any respect being there, so there isn’t much to gain at being at the top. I mainly don’t understand what happened to the company that had a chance of being a trillion dollar market cap company. I guess that company is long gone.

    It’s OK if Wall Street wants Google to be the top company in value but I’m not happy the way Apple is being constantly devalued for specious reasons. Apple has a downright pitiful P/E for a tech company because Apple’s management isn’t able to sell the value of the company to big investors. Google is simply doing a better job of attracting big investors.

    I’m happy I was part of the Apple glory days but nothing lasts forever. I’m willing to settle for a company that merely gives good returns even if the growth is gone. If Apple were a little more aggressive in expanding the company, I’m sure they could do a lot better in terms of revenue, but it is what it is. There are more things to running a healthy company than outright greed. I just wish the analysts, news media and tech pundits would leave Apple alone and stop with all the negativity and pessimism.

  5. Which company is more valuable?

    If you’re going to invest, today, the more valuable company is the one who’s stock price will grow the most and the fastest.

    If you’re ‘holding’, then Apple.

    Even I know that!

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