Alphabet again briefly overtakes Apple as America's most valuable company
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.
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.
Comments
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.
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.
I just wonder why everything seems to be at the end of that long pipe.
Bought another 300 @ 92???
Maybe $300 billion in profits from that "best product ever".