“Apple Inc. may have gotten there first, but Amazon.com’s rapid ascent to a $1 trillion market value should put the iPhone maker on notice that its days as the world’s most valuable company are numbered,” Dan Gallagher writes for The Wall Street Journal. “On Tuesday, Amazon became the second U.S. company to reach a market value of $1 trillion. That happened barely a month after Apple crossed that threshold.”
“Amazon’s price didn’t hold that level for long during a rather rough day overall for stocks, but it is still notable how quickly the e-commerce giant has covered ground,” Gallagher writes. “At the start of the year, Amazon was worth about $566 billion while the iPhone maker was worth about $860 billion. That is a 77% jump for Amazon compared with Apple’s 16% rise. Put another way, the gap in market value between the two largest tech giants has narrowed from 34% to about 9% in eight months.”
Amazon’s “market value of $1 trillion puts the stock a little over 100 times forward earnings compared with 17 times for Apple,” Gallagher writes. “Apple’s current multiple is the highest the stock has fetched since 2010, though, while Amazon’s has fallen by nearly 40% since the start of the year thanks to the company’s rising bottom line.”
Read more in the full article here.
MacDailyNews Take: We’ll see how accurate the WSJ’s crystal ball is when it comes to predicting future valuations.
Amazon briefly joins Apple in the $1 trillion club before falling back – September 4, 2018