Wolf is a good analyst. But if you look at his product list, roughly 60% of Apple's value has been created in the last decade. In fact, the iphone is only 6 years old and the ipad is 3 years old. These two products account for 54% of Apple's value. So, where is the value for R&D, intellectual know how, and Apple ecosystem? Where are the new products to be created in the next five years? Why is the fudge factor negative?! This analysis suggests a static Apple with no new product innovation, no major new products, and I would argue probably undervalues the companies geographic expansion opportunities. The value of any company is based on the present value of the future cash flows. Some portion of that value, however discounted, has to take new products into consideration.
Totally aside from whether or not I support Apple products (I do, happily), if AAPL hits $595 again, I'll probably bail, simply because as an individual investor, I no longer have the stomach for the roller coaster manipulation. I'll take my 600% gain and call it a win.
That's a good way to get others to sell there shares at that price so the shares can dip again. With the next product launch they will nail the lids on all those cloning companies out there.
All the investment firms want to do is drive the price of Apple down so they can jump in, then wait for the price to go up, cash out, then make ridiculous comments and drive the price back down again. This isn't based on reality. It's just a shell game. The hedge fund people and these so-callad expert investment firms are the main reason the stock is down at all. Pathetic. I hope Apple proves them all wrong and these investors lose billions because of their manipulative public comments.
Exactly anyone who understands the stock market knows this trick. Play with human psychology and take advantage of the element of uncertainty in investors , to then make themselves rich. Ground rules to investing in tech companies like Apple is to understand if Apples tech today is aligning itself to capitalize on the next big bubble of tomorrow. Innovation , the kind of acquisitions made to improve certain tech all speaks volumes in deciding this.
So we see them acquiring biometrics tech and improving there mapping tech. 2 elements crucial to building future systems.
They making strides in spreading iOS even stronger to vehicles by partnering with many players. Something that the competition hasn't even started up on.
Analyst - Analist - Anal Yeast - Anal List - A Ney List... !
Do you know what the job of a stock analyst is? it's to give guidance. Now, some are just using the tools the have available to them and they conjure up ways to look at the industry, etc. with regards to a stock. Now, some are very accurate, some aren't. Some analysts are listened to and others aren't. If one out of 12 analysts comes out with a future prediction that proves to be true, then maybe more will listen to that one analyst. It has and always will be a prediction. I would rather use lower guidance and actually hit the number than to have some over estimated dollar amount and not meet the prediction.
All they are are predictions. Nothing more. I actually think Apple is more likely going to hit $595 a share than $700. But what are you getting all bent out of shape over what one predicts?
A stock value x outstanding share is a dollar representation of what the company's worth is. Apple's company value is STILL worth more than their competition and actually a lot of their competitors combined.
Off with Apple's head. Charlie Wolf pulled the handle on the guillotine.
On the other hand, good old Charlie upgraded LinkedIn to a buy because, well, he didn't actually say why, but it had nothing to do with how much money they're actually bringing in. More like future earnings and it currently has the right vibes, yada, yada, yada. So, LinkedIn is flying at $240 a pop and has already doubled this year. High earnings? No. Amazing profits? None to speak of. Those hedge funds really know how to turn lead into gold and gold into lead.
I'd be happy to see Apple at $595 and I don't expect Wall Street to give Apple any leeway. Apple can't double its revenue, so maybe Apple's share price is going to have a low roof. I guess it can't be helped if the hedge funds stay away from Apple. I'll just have to hope for dividend raises twice a year to ease my discomfort knowing that Apple shares will never be worth as much as Google shares. Man, that pisses me off just typing it.
Google makes all its real money off browser ads, a contracting market. Look for Google's stock to go off the rails shortly. Bookmark this page so you can tell me I'm right later. Thank you lol.
I'd be happy to see Apple at $595 and I don't expect Wall Street to give Apple any leeway. Apple can't double its revenue, so maybe Apple's share price is going to have a low roof. I guess it can't be helped if the hedge funds stay away from Apple. I'll just have to hope for dividend raises twice a year to ease my discomfort knowing that Apple shares will never be worth as much as Google shares. Man, that pisses me off just typing it.
Here's how to REALLY analyze Apple stock vs Google stock.
Apple is currently trading at $467 a share (roughly speaking)
Google is currently trading at $885 a share (roughly speaking)
To people that don't understand how to evaluate a stock, one would THINK that Google's stock is worth more. Here's how they aren't. Apple is worth a LOT more than Google.
Apple has approximately 900,000,000 shares outstanding. That's 900 Million
Google has approxmiately 330,000,000 shares outstanding. That's only 330 Million.
Now, if you would multiply the number of share of Google from 330 Mil to 900 Mil, it would turn out to be AROUND 3x. I'll use 3x because it's easily to do the calculations.
So, Google's stock price would actually get divided by 3 to come up with the REAL share price if it's adjusted for the descrepancy of the number of shares outstanding. And the same would be done to the EPS (earnings per share).
So, here's what it would look like.
Apple Stock would remain around $467 a share.
Google (adjusted for shares outstanding) would be more like $295 a share.
Apple has $40 a share in earnings. (EPS)
Google would be adjusted to only $11 a share in earnings (EPS)
Now, if you look at the P/E ration, that's Price to Earnings. Apple is currently trading at a P/E of 11.65 which is actually verging on being a little undervalued.
Google is trading at 25.62 which many would think is a little overvalued.
Obviously, Apple has been around MUCH longer than Google, so it's a much more mature company, even though it still acts like a high growth company. But Apple does pay dividends whereas Google does not.
So, how do you look at each stock?
Do you think Google is going to go up by a higher percentage than Apple? I would suggest it won't. For Apple to go up by 30%, it just has to hit $600 a share (roughly speaking), but in order for Google to go up by 30%, it would have to hit $1153 in the same timer period. plus, with Apple stock, you would be getting a dividend on top of the 30% increase.
Now, both companies are in totally different business sectors. Apple is listed with the SEC as a personal computing company, whereas Google is listed as an internet services company. Google's sales tend to creep up because they are adding more services, but that's because people are using mobile devices more which is where they get more ad clicks, and other behind the scenes money in addition to paid content.
Apple's revenues are generated more by the sales of mostly hardware, s/w, content, services but not so much with the ad clicks and behind the scene revenue generation.
Which would I invest in as far as increasing my portfolio? I would probably look at Apple before I would look at Google at this point in time. Apple has a lot of products that are going to be released and HOPEFULLY they will have a dramatic increase this Dec quarter over last year's Dec quarter, etc.
Apple has several POTENTIAL revenue sources at play.
1. IF they sign on China Mobile which is POSSIBLE. That will be a dramatic increase in revenue/profits.
2. If they sign on DoMoCO, same thing will happen.
3. If they release an improved Apple TV box that allows for cable TV to be granted, that is a HUGE potential.
4. If they release a large screen iPhone, that's another potential increase in revenue's/profits.
5. If they release an actual HDTV smart TV, another huge potential increase.
6. Wearables. Would be another increase in revenue's/profits.
Each one of these can contribute a lot or a little to the overall revenue/ profit potential.
What does Google have as a potential revenue/profit source? Google Glass? PLEASE. They will sell some, but not necessarily that many over the long term. I think that will be a short term fad rather than a long term product. Motorola has been losing money and they might come out with their new Moto X phone, but it's not getting great reviews and Moto might loose money on it if they overspend on marketing/advertising costs. It's almost like their Hail Mary product if you will.
Google is trying to be an ISP, but I don't know how much revenue/profits they will actually see. It's only being announced in some cities and isn't getting widespread.
Buy, sell, rumours. Too much money to be made. We need new laws to encourage accountably in this area as whatever these guys say affects shares too much for there not to be an abundance of corruption.
So true, but I suspect accountability in the stock market is a little to much to expect Ireland ;-) However, to paraphrase Mark Twain, "the reports of Apple's death are greatly exaggerated" ;-) Yes, Wall Street will "pump & dump", but we should just all ignore that rubbish. The real market - consumers - will decide what they want to buy.
Stick with Apple, this great company hasn't even begun to stop innovating yet. It can't go on forever, of course, but the potential for bio-aware gadgets and home entertainment/security markets together with Apple's concept, design and UX culture makes me think that AAPL has a great future for the next five years. After that, we'll see.
"Hostile" in that they pay off government organizations to get their way, yeah.
Hey TS, relax a little can't you? You're way down the road to blowing an artery - life's too short for that.
All governments, can, do, and should support their indigenous entrepreneurs. S. Korea does it, so does the US. You can copy someone else, but you can't "spray on" innovation. You've either got the creative spark or you don't.
Apple is doing just fine - I expect that Apple executives read the stuff we write here, just grin and say "you've not seen anything yet".
Meh, well if it does go up to $595 within a year I'm looking forward to that. I will sell about half my holding and take a profit when it does based on news at he time and the usual guidance from Apple. I have a few other stocks I'd like to divest into in future but I'm not telling you about them just yet
Buy, sell, rumours. Too much money to be made. We need new laws to encourage accountably in this area as whatever these guys say affects shares too much for there not to be an abundance of corruption.
I agree 100%. Market manipulation in the name of news should be illegal or at least confined to Fox News where they are legally entitled to lie.
You know, we are kind of lucky to be fans and part of the most prestigious blog of what is now the Worlds most successful company. Most if us have been around long enough to remember when this wasn't the case but we stuck with Apple. It is hard at times though, to see the greed and manipulation of stock and corruption that now surrounds anything related to Apple. Yes Cramer, I'm talking about people like you.
I dumped my GOOG stock recently because I thouhgt it was overbought based on idiotic enthusiasm and the fact that their main revenue earner is generating less $ per click on mobile for them and getting worse going forward and competition with FB is heating up. Did you see the pop in FB share price, very telling no? Advertisers are beginning to discover that google isn't generating them as much buiness effectively as it was in the past and the click rates are dropping on desktops. This is so important for google I'm amazed it hasn't been talked about more but hey, not my problem anymore!
Quote:
Originally Posted by drblank
Here's how to REALLY analyze Apple stock vs Google stock.
Apple is currently trading at $467 a share (roughly speaking)
Google is currently trading at $885 a share (roughly speaking)
To people that don't understand how to evaluate a stock, one would THINK that Google's stock is worth more. Here's how they aren't. Apple is worth a LOT more than Google.
Apple has approximately 900,000,000 shares outstanding. That's 900 Million
Google has approxmiately 330,000,000 shares outstanding. That's only 330 Million.
Now, if you would multiply the number of share of Google from 330 Mil to 900 Mil, it would turn out to be AROUND 3x. I'll use 3x because it's easily to do the calculations.
So, Google's stock price would actually get divided by 3 to come up with the REAL share price if it's adjusted for the descrepancy of the number of shares outstanding. And the same would be done to the EPS (earnings per share).
So, here's what it would look like.
Apple Stock would remain around $467 a share.
Google (adjusted for shares outstanding) would be more like $295 a share.
Apple has $40 a share in earnings. (EPS)
Google would be adjusted to only $11 a share in earnings (EPS)
Now, if you look at the P/E ration, that's Price to Earnings. Apple is currently trading at a P/E of 11.65 which is actually verging on being a little undervalued.
Google is trading at 25.62 which many would think is a little overvalued.
Obviously, Apple has been around MUCH longer than Google, so it's a much more mature company, even though it still acts like a high growth company. But Apple does pay dividends whereas Google does not.
So, how do you look at each stock?
Do you think Google is going to go up by a higher percentage than Apple? I would suggest it won't. For Apple to go up by 30%, it just has to hit $600 a share (roughly speaking), but in order for Google to go up by 30%, it would have to hit $1153 in the same timer period. plus, with Apple stock, you would be getting a dividend on top of the 30% increase.
Now, both companies are in totally different business sectors. Apple is listed with the SEC as a personal computing company, whereas Google is listed as an internet services company. Google's sales tend to creep up because they are adding more services, but that's because people are using mobile devices more which is where they get more ad clicks, and other behind the scenes money in addition to paid content.
Apple's revenues are generated more by the sales of mostly hardware, s/w, content, services but not so much with the ad clicks and behind the scene revenue generation.
Which would I invest in as far as increasing my portfolio? I would probably look at Apple before I would look at Google at this point in time. Apple has a lot of products that are going to be released and HOPEFULLY they will have a dramatic increase this Dec quarter over last year's Dec quarter, etc.
Apple has several POTENTIAL revenue sources at play.
1. IF they sign on China Mobile which is POSSIBLE. That will be a dramatic increase in revenue/profits.
2. If they sign on DoMoCO, same thing will happen.
3. If they release an improved Apple TV box that allows for cable TV to be granted, that is a HUGE potential.
4. If they release a large screen iPhone, that's another potential increase in revenue's/profits.
5. If they release an actual HDTV smart TV, another huge potential increase.
6. Wearables. Would be another increase in revenue's/profits.
Each one of these can contribute a lot or a little to the overall revenue/ profit potential.
What does Google have as a potential revenue/profit source? Google Glass? PLEASE. They will sell some, but not necessarily that many over the long term. I think that will be a short term fad rather than a long term product. Motorola has been losing money and they might come out with their new Moto X phone, but it's not getting great reviews and Moto might loose money on it if they overspend on marketing/advertising costs. It's almost like their Hail Mary product if you will.
Google is trying to be an ISP, but I don't know how much revenue/profits they will actually see. It's only being announced in some cities and isn't getting widespread.
All of that hostile competition generates, drumroll, ~ $0 in profit. How long can they do it before they give up?
Asian companies are notorious for going years or decades with negative or near zero profit margins. Just look at the debacle happened in Japan the last 10 years - Panasonic, Sharp, Sony. In China, look at Lenova's net profit margin - almost zero. And they are the #2 PC manufacturer in the world behind HP.
ROE or ROA is a completely foreign concept to these companies. This is the world Apple competes in
Life's too short for exposing illegal activity? Come off it.
No, all governments cannot, do not, and should not take bribes, thanks.
Life's too short:
Of course, we should call out, take on, and finger illegal activity and corruption, wherever and whenever we can. Don't misrepresent me - my point was that if we always "blow a gasket" at all the inequities of the world we won't be around too long to fight the next issue.
Bribes:
I suspect you are thinking of the close relationship between Samsung and the S. Korean government. Again, listen to my words rather than your own thoughts. My comment was that "All governments, can, do, and should support their indigenous entrepreneurs". This happens all the time and is entirely natural in the capitalist culture. Note that I didn't say it was fair, just or acceptable. Look out the window at the US culture of PACs and rampant lobbying if you worry that ". . . all governments cannot . . . and should not take bribes".
"Cuts his price target", like there's something deeply troubling in the fundamentals...
"From $710 to $595". A 20% cut in the "target price". *gasp*
TO $595?? But. That's STILL $125 over the current stock price!! More than a 25% gain on value if correct. That's%u2026 a bad thing?
This reminds me of when analysts overestimate Apple's sales expectations, then help to tank the stock when it falls short of their overblown estimates (even though actual sales still set all-time highs and break records).
In this case, they set the "target price" of the stock unrealistically high, then 'set off alarms' when they drop 20% off the (overpriced) target. Never mind that the price target is still 25% above current pricing (which in any other scenario is considered a pretty strong buy?).
What is your position in Apple..... Have you sold all your shares or are you selling short??? Should not not be noticed when you evaluate future pricing??? I think you are a criminal!!!
Personally, it is a little depressing to keep hearing these reports on how the Mac is becoming an endangered species. I find a nice big screen so much more enjoyable to use than a tablet. Mediocre wins again.
Relax, remember what Steve said. 'We need cars and we need trucks, just not as many trucks'. I have no doubt Apple will keep making great trucks
"Cuts his price target", like there's something deeply troubling in the fundamentals...
"From $710 to $595". A 20% cut in the "target price". *gasp*
TO $595?? But. That's STILL $125 over the current stock price!! More than a 25% gain on value if correct. That's%u2026 a bad thing?
This reminds me of when analysts overestimate Apple's sales expectations, then help to tank the stock when it falls short of their overblown estimates (even though actual sales still set all-time highs and break records).
In this case, they set the "target price" of the stock unrealistically high, then 'set off alarms' when they drop 20% off the (overpriced) target. Never mind that the price target is still 25% above current pricing (which in any other scenario is considered a pretty strong buy?).
Comments
That's what i will probably do, sell half my shares at 600. Not bad for buying at 60ish pre-split.
That's a good way to get others to sell there shares at that price so the shares can dip again. With the next product launch they will nail the lids on all those cloning companies out there.
Exactly anyone who understands the stock market knows this trick. Play with human psychology and take advantage of the element of uncertainty in investors , to then make themselves rich. Ground rules to investing in tech companies like Apple is to understand if Apples tech today is aligning itself to capitalize on the next big bubble of tomorrow. Innovation , the kind of acquisitions made to improve certain tech all speaks volumes in deciding this.
So we see them acquiring biometrics tech and improving there mapping tech. 2 elements crucial to building future systems.
They making strides in spreading iOS even stronger to vehicles by partnering with many players. Something that the competition hasn't even started up on.
Quote:
Originally Posted by macologist
Analyst - Analist - Anal Yeast - Anal List - A Ney List...
Do you know what the job of a stock analyst is? it's to give guidance. Now, some are just using the tools the have available to them and they conjure up ways to look at the industry, etc. with regards to a stock. Now, some are very accurate, some aren't. Some analysts are listened to and others aren't. If one out of 12 analysts comes out with a future prediction that proves to be true, then maybe more will listen to that one analyst. It has and always will be a prediction. I would rather use lower guidance and actually hit the number than to have some over estimated dollar amount and not meet the prediction.
All they are are predictions. Nothing more. I actually think Apple is more likely going to hit $595 a share than $700. But what are you getting all bent out of shape over what one predicts?
A stock value x outstanding share is a dollar representation of what the company's worth is. Apple's company value is STILL worth more than their competition and actually a lot of their competitors combined.
On the other hand, good old Charlie upgraded LinkedIn to a buy because, well, he didn't actually say why, but it had nothing to do with how much money they're actually bringing in. More like future earnings and it currently has the right vibes, yada, yada, yada. So, LinkedIn is flying at $240 a pop and has already doubled this year. High earnings? No. Amazing profits? None to speak of. Those hedge funds really know how to turn lead into gold and gold into lead.
I'd be happy to see Apple at $595 and I don't expect Wall Street to give Apple any leeway. Apple can't double its revenue, so maybe Apple's share price is going to have a low roof. I guess it can't be helped if the hedge funds stay away from Apple. I'll just have to hope for dividend raises twice a year to ease my discomfort knowing that Apple shares will never be worth as much as Google shares. Man, that pisses me off just typing it.
Quote:
Originally Posted by Constable Odo
I'd be happy to see Apple at $595 and I don't expect Wall Street to give Apple any leeway. Apple can't double its revenue, so maybe Apple's share price is going to have a low roof. I guess it can't be helped if the hedge funds stay away from Apple. I'll just have to hope for dividend raises twice a year to ease my discomfort knowing that Apple shares will never be worth as much as Google shares. Man, that pisses me off just typing it.
Here's how to REALLY analyze Apple stock vs Google stock.
Apple is currently trading at $467 a share (roughly speaking)
Google is currently trading at $885 a share (roughly speaking)
To people that don't understand how to evaluate a stock, one would THINK that Google's stock is worth more. Here's how they aren't. Apple is worth a LOT more than Google.
Apple has approximately 900,000,000 shares outstanding. That's 900 Million
Google has approxmiately 330,000,000 shares outstanding. That's only 330 Million.
Now, if you would multiply the number of share of Google from 330 Mil to 900 Mil, it would turn out to be AROUND 3x. I'll use 3x because it's easily to do the calculations.
So, Google's stock price would actually get divided by 3 to come up with the REAL share price if it's adjusted for the descrepancy of the number of shares outstanding. And the same would be done to the EPS (earnings per share).
So, here's what it would look like.
Apple Stock would remain around $467 a share.
Google (adjusted for shares outstanding) would be more like $295 a share.
Apple has $40 a share in earnings. (EPS)
Google would be adjusted to only $11 a share in earnings (EPS)
Now, if you look at the P/E ration, that's Price to Earnings. Apple is currently trading at a P/E of 11.65 which is actually verging on being a little undervalued.
Google is trading at 25.62 which many would think is a little overvalued.
Obviously, Apple has been around MUCH longer than Google, so it's a much more mature company, even though it still acts like a high growth company. But Apple does pay dividends whereas Google does not.
So, how do you look at each stock?
Do you think Google is going to go up by a higher percentage than Apple? I would suggest it won't. For Apple to go up by 30%, it just has to hit $600 a share (roughly speaking), but in order for Google to go up by 30%, it would have to hit $1153 in the same timer period. plus, with Apple stock, you would be getting a dividend on top of the 30% increase.
Now, both companies are in totally different business sectors. Apple is listed with the SEC as a personal computing company, whereas Google is listed as an internet services company. Google's sales tend to creep up because they are adding more services, but that's because people are using mobile devices more which is where they get more ad clicks, and other behind the scenes money in addition to paid content.
Apple's revenues are generated more by the sales of mostly hardware, s/w, content, services but not so much with the ad clicks and behind the scene revenue generation.
Which would I invest in as far as increasing my portfolio? I would probably look at Apple before I would look at Google at this point in time. Apple has a lot of products that are going to be released and HOPEFULLY they will have a dramatic increase this Dec quarter over last year's Dec quarter, etc.
Apple has several POTENTIAL revenue sources at play.
1. IF they sign on China Mobile which is POSSIBLE. That will be a dramatic increase in revenue/profits.
2. If they sign on DoMoCO, same thing will happen.
3. If they release an improved Apple TV box that allows for cable TV to be granted, that is a HUGE potential.
4. If they release a large screen iPhone, that's another potential increase in revenue's/profits.
5. If they release an actual HDTV smart TV, another huge potential increase.
6. Wearables. Would be another increase in revenue's/profits.
Each one of these can contribute a lot or a little to the overall revenue/ profit potential.
What does Google have as a potential revenue/profit source? Google Glass? PLEASE. They will sell some, but not necessarily that many over the long term. I think that will be a short term fad rather than a long term product. Motorola has been losing money and they might come out with their new Moto X phone, but it's not getting great reviews and Moto might loose money on it if they overspend on marketing/advertising costs. It's almost like their Hail Mary product if you will.
Google is trying to be an ISP, but I don't know how much revenue/profits they will actually see. It's only being announced in some cities and isn't getting widespread.
Quote:
Originally Posted by Ireland
Buy, sell, rumours. Too much money to be made. We need new laws to encourage accountably in this area as whatever these guys say affects shares too much for there not to be an abundance of corruption.
So true, but I suspect accountability in the stock market is a little to much to expect Ireland ;-) However, to paraphrase Mark Twain, "the reports of Apple's death are greatly exaggerated" ;-) Yes, Wall Street will "pump & dump", but we should just all ignore that rubbish. The real market - consumers - will decide what they want to buy.
Stick with Apple, this great company hasn't even begun to stop innovating yet. It can't go on forever, of course, but the potential for bio-aware gadgets and home entertainment/security markets together with Apple's concept, design and UX culture makes me think that AAPL has a great future for the next five years. After that, we'll see.
Quote:
Originally Posted by Tallest Skil
"Hostile" in that they pay off government organizations to get their way, yeah.
Hey TS, relax a little can't you? You're way down the road to blowing an artery - life's too short for that.
All governments, can, do, and should support their indigenous entrepreneurs. S. Korea does it, so does the US. You can copy someone else, but you can't "spray on" innovation. You've either got the creative spark or you don't.
Apple is doing just fine - I expect that Apple executives read the stuff we write here, just grin and say "you've not seen anything yet".
Originally Posted by Sumergo
Hey TS, relax a little can't you? You're way down the road to blowing an artery - life's too short for that.
Life's too short for exposing illegal activity? Come off it.
All governments, can, do, and should support their indigenous entrepreneurs.
No, all governments cannot, do not, and should not take bribes, thanks.
I agree 100%. Market manipulation in the name of news should be illegal or at least confined to Fox News where they are legally entitled to lie.
You know, we are kind of lucky to be fans and part of the most prestigious blog of what is now the Worlds most successful company. Most if us have been around long enough to remember when this wasn't the case but we stuck with Apple. It is hard at times though, to see the greed and manipulation of stock and corruption that now surrounds anything related to Apple. Yes Cramer, I'm talking about people like you.
Here's how to REALLY analyze Apple stock vs Google stock.
Apple is currently trading at $467 a share (roughly speaking)
Google is currently trading at $885 a share (roughly speaking)
To people that don't understand how to evaluate a stock, one would THINK that Google's stock is worth more. Here's how they aren't. Apple is worth a LOT more than Google.
Apple has approximately 900,000,000 shares outstanding. That's 900 Million
Google has approxmiately 330,000,000 shares outstanding. That's only 330 Million.
Now, if you would multiply the number of share of Google from 330 Mil to 900 Mil, it would turn out to be AROUND 3x. I'll use 3x because it's easily to do the calculations.
So, Google's stock price would actually get divided by 3 to come up with the REAL share price if it's adjusted for the descrepancy of the number of shares outstanding. And the same would be done to the EPS (earnings per share).
So, here's what it would look like.
Apple Stock would remain around $467 a share.
Google (adjusted for shares outstanding) would be more like $295 a share.
Apple has $40 a share in earnings. (EPS)
Google would be adjusted to only $11 a share in earnings (EPS)
Now, if you look at the P/E ration, that's Price to Earnings. Apple is currently trading at a P/E of 11.65 which is actually verging on being a little undervalued.
Google is trading at 25.62 which many would think is a little overvalued.
Obviously, Apple has been around MUCH longer than Google, so it's a much more mature company, even though it still acts like a high growth company. But Apple does pay dividends whereas Google does not.
So, how do you look at each stock?
Do you think Google is going to go up by a higher percentage than Apple? I would suggest it won't. For Apple to go up by 30%, it just has to hit $600 a share (roughly speaking), but in order for Google to go up by 30%, it would have to hit $1153 in the same timer period. plus, with Apple stock, you would be getting a dividend on top of the 30% increase.
Now, both companies are in totally different business sectors. Apple is listed with the SEC as a personal computing company, whereas Google is listed as an internet services company. Google's sales tend to creep up because they are adding more services, but that's because people are using mobile devices more which is where they get more ad clicks, and other behind the scenes money in addition to paid content.
Apple's revenues are generated more by the sales of mostly hardware, s/w, content, services but not so much with the ad clicks and behind the scene revenue generation.
Which would I invest in as far as increasing my portfolio? I would probably look at Apple before I would look at Google at this point in time. Apple has a lot of products that are going to be released and HOPEFULLY they will have a dramatic increase this Dec quarter over last year's Dec quarter, etc.
Apple has several POTENTIAL revenue sources at play.
1. IF they sign on China Mobile which is POSSIBLE. That will be a dramatic increase in revenue/profits.
2. If they sign on DoMoCO, same thing will happen.
3. If they release an improved Apple TV box that allows for cable TV to be granted, that is a HUGE potential.
4. If they release a large screen iPhone, that's another potential increase in revenue's/profits.
5. If they release an actual HDTV smart TV, another huge potential increase.
6. Wearables. Would be another increase in revenue's/profits.
Each one of these can contribute a lot or a little to the overall revenue/ profit potential.
What does Google have as a potential revenue/profit source? Google Glass? PLEASE. They will sell some, but not necessarily that many over the long term. I think that will be a short term fad rather than a long term product. Motorola has been losing money and they might come out with their new Moto X phone, but it's not getting great reviews and Moto might loose money on it if they overspend on marketing/advertising costs. It's almost like their Hail Mary product if you will.
Google is trying to be an ISP, but I don't know how much revenue/profits they will actually see. It's only being announced in some cities and isn't getting widespread.
All of that hostile competition generates, drumroll, ~ $0 in profit. How long can they do it before they give up?
Asian companies are notorious for going years or decades with negative or near zero profit margins. Just look at the debacle happened in Japan the last 10 years - Panasonic, Sharp, Sony. In China, look at Lenova's net profit margin - almost zero. And they are the #2 PC manufacturer in the world behind HP.
ROE or ROA is a completely foreign concept to these companies. This is the world Apple competes in
Quote:
Originally Posted by Tallest Skil
Life's too short for exposing illegal activity? Come off it.
No, all governments cannot, do not, and should not take bribes, thanks.
Life's too short:
Of course, we should call out, take on, and finger illegal activity and corruption, wherever and whenever we can. Don't misrepresent me - my point was that if we always "blow a gasket" at all the inequities of the world we won't be around too long to fight the next issue.
Bribes:
I suspect you are thinking of the close relationship between Samsung and the S. Korean government. Again, listen to my words rather than your own thoughts. My comment was that "All governments, can, do, and should support their indigenous entrepreneurs". This happens all the time and is entirely natural in the capitalist culture. Note that I didn't say it was fair, just or acceptable. Look out the window at the US culture of PACs and rampant lobbying if you worry that ". . . all governments cannot . . . and should not take bribes".
"From $710 to $595". A 20% cut in the "target price". *gasp*
TO $595?? But. That's STILL $125 over the current stock price!! More than a 25% gain on value if correct. That's%u2026 a bad thing?
This reminds me of when analysts overestimate Apple's sales expectations, then help to tank the stock when it falls short of their overblown estimates (even though actual sales still set all-time highs and break records).
In this case, they set the "target price" of the stock unrealistically high, then 'set off alarms' when they drop 20% off the (overpriced) target. Never mind that the price target is still 25% above current pricing (which in any other scenario is considered a pretty strong buy?).
I call a FUD ALERT!!!!
What is your position in Apple.....
Have you sold all your shares or are you selling short???
Should not not be noticed when you evaluate future pricing???
I think you are a criminal!!!
Relax, remember what Steve said. 'We need cars and we need trucks, just not as many trucks'. I have no doubt Apple will keep making great trucks
Maybe he meant aftre a 2: 1 stock split?