Alphabet again briefly overtakes Apple as America's most valuable company

Posted:
in AAPL Investors edited May 2016
Shares hit a 52-week low on Thursday, inching below $90 and allowing rival Alphabet, the parent company of Google, to surpass its market capitalization once again -- at least temporarily.




As of intra-day trading Thursday morning, Apple's market cap hovered below $492 billion. The company reached a new 52-week low of $89.47.

Shares of GOOG, meanwhile, started the day on an upward trend, trading as high as $719.25. That was enough to push Alphabet's market cap -- briefly --?ahead of Apple's.

It didn't last, however. As the morning wore on, shares of GOOG dipped into the red.

As of publication, Alphabet's market cap had dropped back below $490 billion.

The numbers are a long way off from early 2015, when Apple became the first company in U.S. history to reach a $700 billion market cap. At the time, shares of AAPL were trading at around $122.

By late February of last year, Apple's market cap approached $775 billion, making it twice as large as the then-No. 2 largest company, Exxon Mobile.

Since then, shares of AAPL have struggled. The company is more than $40 off from its 52-week high of $132.97.

Alphabet had also briefly topped Apple earlier this year, in February, after Google outperformed Wall Street expectations for its holiday quarter. Apple, however, reclaimed the top spot in trading the very next day.
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Comments

  • Reply 1 of 34
    jcdinkinsjcdinkins Posts: 114member
    Ok.  In big since $50 pre-split (i.e. a long time ago).  In fact, I just bought more at $89.50.  There have been periods during that time where Apple has retracted and it was a full court press (like now) by the media and big money to get this as low as possible.  One thing that is happening with big money is they are having to reallocate portfolios because Apple is not in the "growth stock" category any more.  This is causing some of the heart burn that investors are feeling at this time.  The beat down is beyond ridiculous at this point.  Apple will come back.  Tim Cook is a capable CEO.  At times he can seem apathetic (I will admit), and dealing with a portfolio hit like this is not pleasant.  I do believe in the future of Apple as Tim will press on and continue focusing on making the best products available for consumers.  Long and strong.
    brucemcpatchythepiratedelreyjonesbaconstangcintoscalicornchipbadmonk
  • Reply 2 of 34
    techprod1gytechprod1gy Posts: 838member
    Congrats.  It takes way more than that to earn my admiration.  This is merely stretching for content.
    cali
  • Reply 3 of 34
    ceek74ceek74 Posts: 324member
    This is GREAT news!  Alphabet has soooo many products, let me name them all. (crickets)
    latifbpbaconstangcalicornchip
  • Reply 4 of 34
    rogifan_newrogifan_new Posts: 4,297member
    I expect low 80s soon. As long as the rumor mill is weak iPhone demand and everything else is people complaining about services or overdue Mac updates the stock will be in a funk.
  • Reply 5 of 34
    volcanvolcan Posts: 1,799member
    Where is Sog? I suppose he is still loading up the truck he said he would do if AAPL dropped to 92.
    edited May 2016 singularitySpamSandwichblitz2jackansitechlover
  • Reply 6 of 34
    palominepalomine Posts: 362member
    The stock market reminds me of a zombie show. You know, where there is new zombie gore in every episode. You might see a zombie impaled on a flagpole, then you see one ripped in two by a boat, or how about a combo knife in the gut along with some...fire? What can the stock analysts dream up next? How about a contest between Amazon and Google over who gets the Trillion dollar market cap first? Let's run GOOG up over AAPL market cap for a day! How about AAPL on an 8 day losing streak the worst in 20 years? And wow! Microsoft has reached an all time sales total of a trillion dollars over its history. Maybe they can dunk AAPL back into the $50s with a trashy story about iTunes getting the ax. Know what I mean? Analysts don't seem too worried about trashing Apples reputation though. If the stock falls they can throw out an opposite rumor. The stock suits their purposes for shoring up errant bottom lines and it can be cycled repeatedly.
    calicornchippatchythepiratebadmonk
  • Reply 7 of 34
    brucemcbrucemc Posts: 1,541member
    It is interesting to compare the historical financials of these two companies over the last 10 years.  During that time, I am pretty sure ( that Google/Alphabet has been accorded a significantly higher P/E ratio than Apple during that period, often times much higher.  And it is certainly the case that it is more than 3x Apple now (especially taking out net cash).  In other words, the market has over last 10 years valued Alpha-Google as being capable of much more growth in earnings than Apple.

    However, in looking at historical financials (this is from site "gurufocus"), Apple has had better growth in all areas until just this last quarter or so.  Apples earnings per share annual growth has been much better than Alpha-Google.  Now, you can argue that 10 years ago, no one could forecast that Apple would do this well, but isn't that the point?  That the market is always valuing Apple as likely to be low growth, regardless of what they have done recently.


    I do understand that the market tends to look at new frontiers and reward those most expected to succeed there with high P/E multiples (hello Facebook, Netflix, Amazon).  But at some point those companies grow up & generally the growth slows.  This is now happening to Apple, but Apple hasn't been afforded a high P/E for growth in modern (post 1997) times.  They have gone from being valued from middling-to-low growth, to now being valued as though growth has ended (for good).

    Per above, Alphabet's growth has slowed, and isn't much more than Apple.  Looking at markets and competition, Google's ability to re-ignite growth isn't as rosy as it once was.  Facebook is the star there now.  How long before Alphabet's P/E wings will be clipped.  I can't say I will be investing in them.

    Facebook has a good run way of growth ahead, but you can bet that when their earnings get anywhere near half of what Apple's are now, their P/E will have contracted a lot.  

    For growth companies, you can ride the wave until it no longer rises, and try to get out.  But it is not an investment for the faint of heart.  Looking out 5 years, I would sleep a lot better with my investments in Apple (given their share price & P/E and PEG are so low), vs. the other two.



    palominexiamenbilldelreyjonescornchippatchythepirateMacProbadmonk
  • Reply 8 of 34
    isteelersisteelers Posts: 738member
    I think it is great time to buy if you have the means.  With the profits Apple makes, the stock will go up. All of the doom and gloom is overblown as always.  Not matching the most profitable quarter in history is no cause for alarm. 
    cali
  • Reply 9 of 34
    VisualSeedVisualSeed Posts: 217member
    Yawn... when Google surpasses what Apple was at its highest then I'll be impressed. This is just like in a race where the leader has to pit and some of the other cars get to lead a lap or two. 
    cintoscornchip
  • Reply 10 of 34
    SpamSandwichSpamSandwich Posts: 33,407member
    isteelers said:
    I think it is great time to buy if you have the means.  With the profits Apple makes, the stock will go up. All of the doom and gloom is overblown as always.  Not matching the most profitable quarter in history is no cause for alarm. 
    IMO (and this should not be considered advice for anyone...do your own homework), this is my time to buy. I've got one outstanding order and if the stock further drops somewhere in the $80s range, that will be incredible.
    edited May 2016 cali
  • Reply 11 of 34
    tkell31tkell31 Posts: 216member
    Don't worry, if you think this is a good time to buy just wait a few months until it's in the 70s then it will be an even better time to buy.  The iPhone7 sales are going to be terrible, but you can take solace in the fact Cook will declare it their best product ever.
    jackansi
  • Reply 12 of 34
    apple ][apple ][ Posts: 9,233member
    When I first started playing the market, I would be terrified every time that a stock that I owned dropped as little as a percent or two.

    Now, stock drops don't even bother me in the least, and I'll be adding a little bit more to my AAPL position soon. :#
    SpamSandwichcornchip
  • Reply 13 of 34
    satchmosatchmo Posts: 2,699member
    I expect low 80s soon. As long as the rumor mill is weak iPhone demand and everything else is people complaining about services or overdue Mac updates the stock will be in a funk.
    Don't worry, Tim says they've got some great products in the pipeline. *sarcasm*
    I just wonder why everything seems to be at the end of that long pipe.
  • Reply 14 of 34
    blitz2blitz2 Posts: 34member
    Paging sog!
    Paging sog!
    Bought another 300 @ 92???
    jackansisingularitySpamSandwich
  • Reply 15 of 34
    tmaytmay Posts: 5,762member
    tkell31 said:
    Don't worry, if you think this is a good time to buy just wait a few months until it's in the 70s then it will be an even better time to buy.  The iPhone7 sales are going to be terrible, but you can take solace in the fact Cook will declare it their best product ever.
    I'd speculate that Apple has exceeded a trillion dollars in revenue from the iPhone over its life; nobody but Samsung is even in the running for smartphone revenues.

    Maybe $300 billion in profits from that "best product ever".


    cali
  • Reply 16 of 34
    thewhitefalconthewhitefalcon Posts: 4,453member
    I expect it to get hammered if the iPhone 7 is a modest upgrade. But long term I'm confident in Apple. 
  • Reply 17 of 34
    bobschlobbobschlob Posts: 1,074member
    volcan said:
    Where is Sog? I suppose he is still loading up the truck he said he would do if AAPL dropped to 92.
    blitz2 said:
    Paging sog!
    Paging sog!
    Bought another 300 @ 92???
    I can't tell if you guys are bashing sog with these posts, or bashing AAPL (?)
  • Reply 18 of 34
    paul turnerpaul turner Posts: 222member
    isteelers said:
    I think it is great time to buy if you have the means.  With the profits Apple makes, the stock will go up. All of the doom and gloom is overblown as always.  Not matching the most profitable quarter in history is no cause for alarm. 
    Never try to catch a falling knife, it could be finding support at 90 but who knows , there are a number of ways to play
  • Reply 19 of 34
    paul turnerpaul turner Posts: 222member
    volcan said:
    Where is Sog? I suppose he is still loading up the truck he said he would do if AAPL dropped to 92.
    Mr Same Old Gripe is wiped out remember he bought at 99 and is now down 10% , unless he only took a small position and is scaling in I doubt he will be back to endure more ridicule 
  • Reply 20 of 34
    bobschlobbobschlob Posts: 1,074member
    isteelers said:
    I think it is great time to buy if you have the means.  With the profits Apple makes, the stock will go up. All of the doom and gloom is overblown as always.  Not matching the most profitable quarter in history is no cause for alarm. 
    Never try to catch a falling knife, it could be finding support at 90 but who knows , there are a number of ways to play
    Wow. You really ARE smart!
    jcdinkins
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