Alphabet Inc., which includes Android-maker Google, just surpassed Apple Inc. as the most valuable company in after-hours trading on Monday.
Alphabet knocks Apple from the top spot that it has held for the better part of four years.
After the bell, Alphabet’s combined share classes were worth a total of $568 billion versus Apple’s value of $535 billion.
A year ago, Apple had a market value of $643 billion, nearly twice Google’s $361 billion.
“The last time Google was more valuable than Apple was in February 2010, when both companies were worth less than $200 billion,” Ari Levy reports for CNBC. “At the time, Apple had yet to release its first iPad, the newest iPhone on the market was the 3GS, and the Mac was the company’s biggest product line, accounting for one-third of revenue. Steve Jobs was still at the helm.”
“Google’s latest rise versus Apple began in July,” Levy reports. “From that point through the end of 2015, its shares soared 44 percent, while Apple’s sank 16 percent.”
“Investors are concerned,” Levy cloims, “that unless Apple changes course and decides to compete with lower cost Android manufacturers on price, the iPhone’s best days are in the past.”
MacDailyNews Take: Holy crap, that’s the stupidest statement of the year so far (and that’s saying a lot)!
“Meanwhile, Google is convincing investors that in the transition from Web to mobile it will maintain its dominance,” Levy writes.
“According to eMarketer, Google is poised to capture 32 percent of the mobile ad market this year and next, staying well ahead of Facebook, which is around 20 percent,” Levy reports. “The company generates so much profit from its digital ad business that it can invest in all sorts of potential growth areas, namely autonomous driving and extending life.”
Full article here.
MacDailyNews Take: Again, while “most valuable company” is a nice title to have, “maker of the best products and services” is really Apple’s goal, not to have the higher result of shares outstanding multiplied by share price.
If losing this symbolic crown – to Google, no less – makes Apple redouble their efforts to delight customers with excellence, we welcome the coronation wholeheartedly.
Alphabet Inc. is close to snatching Apple’s crown as the world’s most valuable company – February 1, 2016
Apple would be worth $1 trillion if market valued it like Steve Jobs-run company – January 4, 2016
Analyst: How Apple’s market value hits $1 trillion in 2016 – November 10, 2015
Analyst: Apple at $1 trillion in a year – May 11, 2015
Apple regains ‘World’s Most Valuable Company’ crown – August 1, 2013
Apple overtakes Exxon Mobil as world’s most valuable company – August 9, 2011