“When markets closed in the US on Jan. 29, just $13 billion separated Alphabet from Apple, the world’s most valuable company,” Alice Truong reports for Quartz. “With each passing day, it’s becoming ever more likely that Alphabet, Google’s new parent company, will overtake Apple in market capitalization.”
“Apple reported slightly slower revenue growth for its holiday quarter and provided a weak sales forecast for the current quarter, both below analyst consensus,” Truong reports. “So now it’s Alphabet’s move.”
Alphabet’s “stock has been incrementally climbing in recent days leading up to earnings, which it reports tomorrow (Feb. 1) and analysts overall are optimistic about, projecting a 17% increase in sales year over year, according to FactSet,” Truong reports. “And as Google has demonstrated in the past, a stellar earnings report can add tens of billions of dollars of value in a single day.”
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.
A theoretical kick in the ass such as being surpassed atop the market cap heap by the likes of Alphabet Inc., no less, might not be such a bad thing.
Whatever it takes to reignite the fire for attention to detail in Cupertino is A-OK with us.
Complacency kills. Execution matters.
Apple regains ‘World’s Most Valuable Company’ crown – August 1, 2013
Apple overtakes Exxon Mobil as world’s most valuable company – August 9, 2011