The most Apple thing to do.
Is that legit now? Apple is the second $1tn company on the world history?
According to Bloomberg and CNBC, it sure has!
No one knows for sure, it’s maddening. Search ‘apple trillion’ in Google News, some are saying it is, others like CNBC are doing live count downs…
Personally I think Google has it right, as they seem to have updated their data after the change in outstanding shares.
Ronald Wayne must be delighted.
The BBC’s just called it too -
Edit - here’s the FT’s coverage (paywall) as well.
Petrochina October 2007
Albeit it didn’t last too long
petrochina I think?
According to Yahoo it has too I wasn’t expecting this topic to be that much fun but it’s strangely intriguing
We were discussing P/E ratios in the office yesterday. Would be interesting to hear others’ views. Presumably Apple appears undervalued despite being the biggest (public) company in the world?
Apple is the least “Tech” company from the list, and being in a “Consumer Goods” sector kind of makes it “must have” lower P/E in comparison to Technology.
Apple’s revenue growth is 17%, whereas Facebook’s was 42%, Amazon’s was 40%, Google’s was 26% (Netflix’s hardly deserves to be in FAANG).
Investors have faith in Amazon/Facebook/Google expanding their sectors, because they have already monopolised their core areas (retail/social media/search engine). Apple does not seem to have any room to go and all they can hope for is hardware sales (iPhone is 2/3 of their business) and “Services” revenue growth, which they are praying for every quarter.
The more businesses are now going into cloud, the less strong hardware is needed so it is a risk to Apple’s business model.
I am personally happy with Amazon’s (25% of my non-CrowdCube portfolio) P/E of 190 (was 260), they have paid ridiculous $2bn in a form of corporation tax in the past 7 years (if I remember correctly) and all the money goes back to growth and penetration into other sectors (healthcare, finance and shipping) - it is abnormal to grow at 40% YoY when you revenue exceed $200bn.
Apple is soon to become a Dog, whereas Amazon is yet to be come a Star.
Pretty impressive that AAPL got to 1tr with that p/e, and the ratio would be higher if the cash pile was backed out of P. (Mind you, it looks as if the plan is to reduce the cash pile with ever more aggressive buybacks and R&D spend.)
(Naively) AAPL has mostly been valued historically as a hit machine - “Yeah but will the next iphone work?”, “Yeah but what’s after the iphone?” etc, and priced as if potential disaster is always around the corner. Amzn’s wall st narrative has been more like “Will win everything eventually so it’s ok if net profit is zero”. I feel like the size of the Apple cash generation machine hides the size/potential of its services business.
What do I know? Nothing. I happily hold both.
Quote from the BBC article:
PetroChina was briefly worth about $1.1 trillion after floating in Shanghai in 2007, although most of its shares were held by the Chinese government. It is now worth about $220bn.
Good questions. It’s the first truly public company to legitimately reach this milestone without controversy I believe.
What a journey :
They made it