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, itâs maddening. Search âapple trillionâ in Google News, some are saying it is, others like CNBC are doing live count downsâŚ
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.
Second?
Petrochina October 2007
Albeit it didnât last too long
petrochina I think?
According to Yahoo it has too I wasnât expecting this topic to be that much fun but itâs strangely intriguing
We were discussing P/E ratios in the office yesterday. Would be interesting to hear othersâ views. Presumably Apple appears undervalued despite being the biggest (public) company in the world?
Apple is the least âTechâ company from the list, and being in a âConsumer Goodsâ sector kind of makes it âmust haveâ lower P/E in comparison to Technology.
Appleâs revenue growth is 17%, whereas Facebookâs was 42%, Amazonâs was 40%, Googleâs was 26% (Netflixâs 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 âServicesâ 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 Appleâs business model.
I am personally happy with Amazonâs (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 - âYeah but will the next iphone work?â, âYeah but whatâs after the iphone?â etc, and priced as if potential disaster is always around the corner. Amznâs wall st narrative has been more like âWill win everything eventually so itâs ok if net profit is zeroâ. 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. Itâs the first truly public company to legitimately reach this milestone without controversy I believe.
What a journey :