“Alphabet Inc. might win the market cap battle against Apple Inc., but will it win the war?” Sayantani Ghosh and Supantha Mukherjee report for Reuters. “Maybe not.”
“The median share price forecast of 30 analysts who raised price targets after Alphabet reported strong results on Monday was $920, suggesting that the company formerly known as Google could be valued at $625 billion in the next 12 months,” Ghosh and Mukherjee report. “Apple, tracked by 49 analysts, would be valued at $748.5 billion, at the current median price target of $135.”
“That’s not all,” Ghosh and Mukherjee report. “A look at the most bullish price targets on the companies’ shares shows that Alphabet is expected to be valued at $734 billion in the next 12 months, while Apple could hit $1.10 trillion – the first publicly listed company ever to be worth more than $1 trillion.”
“Apple – whose shares have fallen about 18 percent in the past year – has an upcoming catalyst in the form of the iPhone 7 launch in September. That could spur sudden growth,” Ghosh and Mukherjee report. “Apple shares trade at 10.59 times forward 12-month earnings versus Alphabet’s 22.47, among the most expensive in the tech sector.”
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MacDailyNews Take: Not only will Apple’s iPhone soon likely reap 100 percent of world’s smartphone profits, but Apple’s revenue is over 3 times Alphabet Inc.’s revenue.
Apple vs. Alphabet net income (2008-2015)
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015