“Ostensibly, investors put their money into a company – an investment – in the hopes that the management team will create and sell products and services which deliver growing revenue and profits which, in turn, increase the value of the company and its stock,” Kate MacKenzie writes for Mac360. “If that’s how you think it works you’d be wrong.”
“As of today Alphabet, Google’s parent company, is sneaking up behind Apple Inc to become the world’s most valuable technology company (or, put another way, the most valuable company in the world). The company is no longer Google. It’s Alphabet, a clever name for a company that has one product of significance. Google,” MacKenzie writes. “GOOGL has grown in value since the name change because, you know, perception is reality. Meanwhile, AAPL has suffered in the past year because, you know, gloom and doom. Unfortunately, the stock market is rigged sufficiently that emotion drives stock more than facts and figures.”
“How can GOOGL, a company with little diversification and a single product that is floundering at a base level be more valuable than a technology gadget maker with over a billion very loyal customers, a company whose products own the premium and profitable end of every business segment?” MacKenzie writes. “If it defies logic and reason then there must be manipulation going on behind the scenes with market forces greater than the obvious. If that’s the case then the market is rigged.”
Read more in the full article here.
MacDailyNews Take: The market craves GROWTH (iPhone unit sales growth, in particular). Until Apple can promise/show growth, all bets are off.
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