131–140 of 445 posts
Earlier quoted context omitted.
I absolutely agree that comparing Google and apple is silly. But calling Google an "artificial intelligence" company is just feeding another buzzword into the fire.
Google's flagship product is a box that you can type words into, and get relevant texts/references/facts in response. It seems like a textbook example of AI.
Interesting that Apple's net profits last quarter was greater than Alphabet's revenue.
Because Apple sells fashion products whereas Alphabet consists of a wide variety of companies with Google itself mostly making money with advertising? Other than having overlapping categories in their product and service portfolio, I have no idea how the two can be compared. I mean, Alphabet has military robots.
The comparisons between Google and Apple aren't as apples-to-apples as everyone in the media seems to think. If we're talking about the future of these companies, and their earning power, they are situating themselves very differently. Apple is really a consumer electronics company, Google is an artificial intelligence company. And investors think more money will be in the future of AI instead of consumer hardware an…
No, first you are mistaking a bet on a single company for a bet on an industry. The obvious counterexamples being that there are no shortage of wannabe AI companies valued orders of magnitude lower than Apple, that doesn't mean wall street thinks devices beat ai as an industry gold mine.
Google is valued highly today because they print money today. They print money because of search and advertising. They are really good at this and that's why their market cap exceed's Apple's today.
These prices are not remotely rational. There's no serious investor that thinks Apple is going to shut the lights off inside 7 years which is what the current 'market cap' would tell you.
Earlier quoted context omitted.
Why? It's obvious that is where they are going.
Calling someone an "X company" means that they make their money from X. There are aspects of AI in targeted advertising, but not enough to call them an AI company rather than an advertising company. It doesn't really matter where they're going- that's what they aspire to be, not what they are. If you judge companies based on their aspirations, you end up judging them based on their most positive and idealistic versio…
Earlier quoted context omitted.
70% of the revenue and (maybe) 80% of the profit of Apple comes from a single product - the iPhone. Apple themselves have given lower guidance going forward. There is a limit to the number of people buying iPhone at huge margins every year. The total units might continue to grow but not at the current margins and not as frequently. Hard to be bullish unless some other product takes off.
unlike Google, where practically 100% comes from one single product, which is ads. all "other bets" are actually losing money, per their data.
And we only know that the "other bets" (non-Google Alphabet operations) are losing money in aggregate, not that all of them are losing money individually.
[1] http://www.streetinsider.com/dividend_history.php?q=AAPL
[2] http://www.streetinsider.com/dividend_history.php?q=GOOG
[3] http://www.streetinsider.com/dividend_history.php?q=MSFT
Earlier quoted context omitted.
If you add in the same comparison to Facebook's numbers, the valuations look even more puzzling (using the most recent quarter): * Apple's quarterly revenue: $75.9b * Apple's quarterly profit: $18.4b * Apple's market cap: $538.7b * Apple's P/E ratio: 10.24 * Google's quarterly revenue: $21.3b * Google's quarterly profit: $6.8b * Google's market cap: 517.6b (pre-earnings) * Google's P/E ratio: 35.37 (pre-earnings) * F…
Now do Amazon which is a retailer, often running at a loss on the retail side, with a nicely growing Hosting business... but even the margins on the hosting business don't justify Amazon's P/E ratio. I don't think the market is efficient, it has a lot to do with perception. Amazon, for instance, is constantly doing press releases for products, even products that have no future (this is a deliberate strategy near as I…
No idea what the rest of the company is like, but internally, Lab126 employees treat it as a stepping stone until their resume or skillset becomes good enough for Apple, Google, etc.
Out of curiosity, is there a reason Google/Alphabet shouldn't be on the Dow?
Incidentally this is why when you hear anyone quoting the Dow you can tell immediately that they are either clueless or an innumerate moron.
Am I missing something? Based on the current market cap numbers on Google Finance, Apple is still higher than Alphabet.
People were losing their minds over the fact that iPhone shipments slightly declined. If you look at the year over year growth (excluding the massive bump for iPhone 6), it would show that AAPL is still ahead of the growth curve. See https://imgur.com/vO0kPEy * Apple's quarterly revenue: $75.9bil * Apple's quarterly profit: $18.4bil * Google's quarterly revenue: $21.3bil * Google's quarterly profit: $6.8bil In sheer…
Which pretty much shows that the market value of a company is not based on what they sell today, but on the expectation of what they will sell tomorrow. Does Apple do research in biotech (Alphabet's Calico)? Are they developing drones delivering wireless internet to the world (Google's Skybender)? Do they have an investment arm (Google Ventures)? Did they start an ISP (Google Fiber)? People see Alphabet's increasing…
If you (correctly) disagree with this assessment, there may be money to be made here. If you agree with it, well, I understand why Apple wouldn't look very appealing.