“As the digital advertising market booms and demand for smartphones wanes, Alphabet Inc. could soon dethrone Apple as the world’s most valuable company,” Michael Liedtke reports for The Associated Press. “If it happens, Alphabet will move to the head of the class just five months after Google reorganized itself under the holding company.”
“The Silicon Valley rivals could trade places as early as Friday, given how rapidly the financial gap between them is narrowing. At the end of trading on Thursday, Apple’s market value stood at $522 billion; Alphabet was worth $515 billion,” Liedtke reports. “That’s a dramatic swing from where things stood just 13 months ago. Apple then boasted a market value of $643 billion, almost twice Google Inc.’s $361 billion.”
Liedtke reports, “The company has struggled to come up with another trend-setting product amid slumping sales of its most important device — the nearly 9-year-old iPhone, which accounts for roughly two-thirds of Apple’s overall sales.”
MacDailyNews Take: Apple just posted all-time record sales of iPhone, 74.779 million units in 91 days, and The Associated Press is reporting it as “slumping sales.” Keep that in mind when you read other articles from The Associated Press.
“Investors also have applauded the creation of Alphabet, which is structured to provide more information about the cost of the company’s experimental ventures into self-driving cars, Internet access services, health science and city management,” Liedtke reports. “All of those factors have helped lift Alphabet’s stock — previously Google’s — by 41 percent since the end of 2014.”
“It’s a potentially big shift for Apple, which has held bragging rights as the world’s most valuable company for most of the past four-and-a-half years. (ExxonMobil seized the high ground for a brief time in 2013),” Liedtke reports. “Alphabet would become the 12th company to rise to the most valuable spot, according to Standard & Poor’s.”
Read more in the full article here.
MacDailyNews Take: Losing the title of “the world’s most valuable company,” will only ratchet up the pressure on Apple Inc.’s management. For Tim Cook, especially, there will be nowhere to hide from investors, especially with the stock doing so poorly. Market valuation is largely out of Cook’s direct control; execution, attention-to-detail, and properly-stocked launches are not.
If you bought AAPL one year ago today, you’re currently down $24.81 per share excluding dividends totaling a mere $1.56.
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