In the future, all restaurants will be Google.
Google/Alphabet has been growing slow and mostly steady, and Apple has just tanked, and this is where the lines cross:
I’m no friend of Apple, but I’ll say the same thing here that I did when Apple was riding high: nobody stays there forever, and no company is really worth that much. When stocks are overvalued, they inevitably fall.
you all realize that apple has been buying back shares, which reduces its market cap, right? also, isn’t it funny that google, a software company, can’t get the margins that apple, a hardware company, gets? and yet wall street is rabid about apple’s margin, and doesn’t seem to care apple google’s.
apple isn’t in any way overvalued. as marc andreesen said, it’s priced like a steel mill that’s going out of business. if anything, the FANG stocks are overpriced.
No. Reducing the number of free shares increases earnings per share because the shares that companies buy back are not merely bought back but cancelled. That increases the stock price, which means the market cap, which is after all the valuation of a company doesn’t change. Because good reasons.
I’m sure not an analyst, but doesn’t Apple’s P/E reflect the ephemeral nature of it’s products and business model? RIM was bulletproof until complacence about it’s corporate customer base and a few bad decisions left it a shattered corpse. Earnings today seem a small guarantee of future earnings. The nature of Google’s model seems more resilient, and self perpetuating. Other searchers have tried to take a bite of it’s lunch, with not too much success. On the other hand the iPad market is saturated and Android phones are extremely good, many like the excellent Moto G at a fraction the price of an iPhone.
if the share price was $100 and there were 6 billion shares, the market cap would be higher than if the share price were $100 and there were 5 billion shares. because math reasons.
Is it OK to hate Google now?
It’s fine, just don’t be evil.
Yes, but if the number of shares drops enormously, the price of the remaining shares goes up. That’s why companies buy back shares in the first place. Not sure whether it is as exact as @robert_c_baruch suggests, I’m not strong enough in economics, but the principle is sound
huh, looks like apple is on top again (currently 531B to 518B according to google finance. i wonder where all the articles about it are?
You’re about five or ten years behind the curve.
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