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Apple Surpasses Wal-Mart in Market Capitalization

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Apr 12, 2001
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Just days after reaching $200 billion in market capitalization, Apple has pushed past Berkshire Hathaway and Wal-Mart to take the third spot in market capitalization among publicly-listed U.S. companies behind Exxon Mobil and Microsoft. Apple and Wal-Mart remain neck-and-neck today, with minute-by-minute fluctuations in the two companies' stock prices causing them to rapidly swap positions.


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Apple's stock price has continue to drift upward this week as excitement from the iPad pre-orders continues to abound, while Berkshire Hathaway and Wal-Mart have remained stagnant or even dropped a bit, allowing Apple to catch up.

Apple has a ways to go to reach second place, however, as Microsoft holds nearly a $50 billion lead over Apple. At present share counts, AAPL stock, currently at $226 per share, would have to increase to the $280+ range to match Microsoft's current market capitalization.

Article Link: Apple Surpasses Wal-Mart in Market Capitalization
 
Article Link
https://www.macrumors.com/2010/03/12/apple-surpasses-wal-mart-in-market-capitalization/
Apple Is Doomed!!!

That is it Apple is Doomed, they will be out of business by the end of the year!

O wait... I was channeling Michael Dell. sorry.
 
seems like the age of the dinosaur (MS) may be coming to an end soon...they are so ...20th century. (some might argue 19th)



"I would be happy to put (a PC version) of OS X on our machines" Micheal Dell after he woke up
 
In all seriousness, I wonder what Michael Dell thinks about all the success Apple is having right now. Ala not all of it computer based IE desk top and lap top, but still. I would be curious as to what he is thinking now about Apple.
 
rhett7660 said:
In all seriousness, I wonder what Michael Dell thinks about all the success Apple is having right now. Ala not all of it computer based IE desk top and lap top, but still. I would be curious as to what he is thinking now about Apple.
Click to expand...

At the time that statement was made, I think Dell was in the right

It is a RARE case that a company turns around as Apple has

With that said, I bet Dell thinks highly of Apple
 
Apple could use it' cash reserve alone to buy every kid in school...yes every grade in the US... an ipad for xmas
 
I hate Walmart - no, I LOATHE Walmart. Walmart's business tactics are abhorrent and simply demonstrate the lack of morals and sense of decency from the capitalist landscape. If you want to blame any one company for the outsourcing of jobs to China "trend", start with Walmart. Walmart has strong armed such American based companies as Rubbermaid to produce their products in China, then using their closed factories in the states as strongholds to build a new Walmart and employ those ex-Rubbermaid employees. Walmart threatened Rubbermaid that they would pull their products from their shelves, which is roughly 50-60% of Rubbermaid's revenue. When Rubbermaid refused years ago, Walmart followed through with their threat, which resulted in Rubbermaid caving in to keep their company.

These large companies that buy products in huge amounts for cheaper prices have put small businesses nearly out of competition. A small business doesn't have nearly enough capital as a company such as Walmart to supply the same or better products at competitive prices. This capitalist stronghold Walmart has developed over small businesses in America has resulted in the huge slant seen in the economic American topography that favors big businesses. The U.S. needs to examine the business tactics that these companies utilize as they have certainly resulted in the failed economy we are currently struggling to fight.

Apple's decision to produce their products in China is certainly not helping the U.S. economy either. It would be a breathe of fresh air, with their huge cash reserve, if Apple, Inc. revamped the U.S. job market as they have been with the electronics market by insisting on U.S. production of their products and pushing law to benefit both the corporations and the U.S. workers. Tax breaks? Better working conditions? Is there any way to make both work?

/end rant :)
 
Because market capitalization is largely a function of groupthink about the future value of a company, guessing how far up or how fast up is not as interesting as the discussion about downside in times of trouble. Only one year ago we had the ultimate test of that so we saw what groupthink was of the "inherent value" of these firms. As a percentage of price Apple has had a higher rise since then which is reflective of a higher price multiple associated with higher profit growth rate. Therefore if you are a stock speculator, you are going to get more alpha with AAPL. If you are a defensive investor, you are probably better off with Exxon or Berkshire since they have a diverse collection of income producing businesses with low elasticity of demand.

One thing about Apple is it has high elasticity of demand.

Rocketman
 
Dell Wanted OS-X badly...

rhett7660 said:
In all seriousness, I wonder what Michael Dell thinks about all the success Apple is having right now. Ala not all of it computer based IE desk top and lap top, but still. I would be curious as to what he is thinking now about Apple.
Click to expand...

Don't know how you guys missed it, but it was very public - Dell wanted VERY BADLY to license OS-X from Apple and sell it on his computers, but Apple refused him. Michael Dell has an open mind about this, but you can see why it worries Steve Jobs. What if some Dell PC running OS-X isn't exactly the way he'd like it, or tarnishes the image? Especially if he's selling OS-X on low cost, "tank like" laptops so he can cover the license fee.

But never say never. :)
 
jdiamond said:
Don't know how you guys missed it, but it was very public - Dell wanted VERY BADLY to license OS-X from Apple and sell it on his computers, but Apple refused him. Michael Dell has an open mind about this, but you can see why it worries Steve Jobs. What if some Dell PC running OS-X isn't exactly the way he'd like it, or tarnishes the image? Especially if he's selling OS-X on low cost, "tank like" laptops so he can cover the license fee.

But never say never. :)
Click to expand...

Michael Dell's a loser.
 
As much as I'd like to think that Apple will sustain this, I am pretty sure Walmart will push back on top. I hate Walmart as much as the rest of you, but they are like viruses on a PC, they are everywhere. If the iPad does not dominate to AT LEAST the level some expect, stock prices will regulate to something like where they were a few months ago.

As far as Microsoft goes, they are probably working on some secret project that they expect will ensure the continuation of their species (like courier, the iPad clone). I am going to say optimistically that Apple surpasses them (or they fall below Apple) by the end of next year. But they will stick around a while because they appeal to the market segment (which is quite large) that does not care how good a product is if it provides them the illusion of being cheaper (because, as we all know, price differences between Mac and PC really are an illusion).
 
Rocketman said:
Because market capitalization is largely a function of groupthink about the future value of a company, guessing how far up or how fast up is not as interesting as the discussion about downside in times of trouble. Only one year ago we had the ultimate test of that so we saw what groupthink was of the "inherent value" of these firms. As a percentage of price Apple has had a higher rise since then which is reflective of a higher price multiple associated with higher profit growth rate. Therefore if you are a stock speculator, you are going to get more alpha with AAPL. If you are a defensive investor, you are probably better off with Exxon or Berkshire since they have a diverse collection of income producing businesses with low elasticity of demand.

One thing about Apple is it has high elasticity of demand.

Rocketman
Click to expand...
I think the thing that sustained Apple is a bit more basic, in that it was (and still is) a cash based company. They do not operate on credit (debt). This is a rather foreign concept to the vast majority US companies, however if more had followed suit, we probably would not still be talking about the financial issues we were, and still are, dealing with. So as an investor, I look at this aspect of a company as well.
 
Rock Star

From Bob Lefsetz, one of the last men standing in the music business:

APPLE SURGES PAST WAL-MART TO BECOME 3RD MOST VALUABLE U.S. COMPANY

http://macdailynews.com/index.php/weblog/comments/24351/

How does a mercurial bastard who ignores conventional wisdom end up running a company bigger than Wal-Mart?

Isn't it funny. Today's acts are told by managers and agents and labels to sell out, quick, to do it just like everybody else, but the big winner, Steve Jobs, does it his own way, listens to nobody, doesn't license Apple's technology, prices his products high and makes you believe your life will be empty without them.

Steve Jobs is a rock star.

You remember rock stars, don't you? Those people beholden to no one, who wrote their own rules? Who created music totally different from what came before, which people flocked to?

And Apple is Warner/Reprise. The old company. Run by Mo Ostin. You know, the one where every band was good. Sure, the ultimate recording might not capture the magic, but if it was on Warner, it was worth checking out. There might be some duds, like Apple TV, but the winners made it all worth it.

When Steve Jobs does his keynote, I get up early to see what he has to say, I watch the endless presentation unspool, a condensation by some tech reporter just will not do. I want more. The same way I wanted to know everything about Led Zeppelin and had to go see the Who perform "Tommy" at the Fillmore East.

The rabidity has left music and entered tech.

And who do we have to blame?

The boomers. So inured to their lifestyles that they don't want change, they just want it the way it used to be. Overpriced CDs and concerts performed by bands who perfected their music on a spreadsheet.

Steve Jobs specializes in selling us what we didn't even know we wanted. Remember when the music business used to do this?
 
bedifferent said:
Apple's decision to produce their products in China is certainly not helping the U.S. economy either. It would be a breathe of fresh air, with their huge cash reserve, if Apple, Inc. revamped the U.S. job market as they have been with the electronics market by insisting on U.S. production of their products and pushing law to benefit both the corporations and the U.S. workers. Tax breaks? Better working conditions? Is there any way to make both work?
Click to expand...

This is a terrific idea, and would certainly benefit the U.S. economy, even if only in a small way. But would it benefit Apple financially? In the long run, it would cost Apple quite a bit more in health care costs, retirement packages, wages, etc. The workers would most likely unionize. So Apple's bottom line would be tightly squeezed. But the workers are the ones who keep the company moving, so they should also reap the benefits of Apple's success. Unfortunately, the U.S. corporate culture is currently not looking to spread wealth around. Wealth is tightly guarded. Cheap labor in China is one way corporations can keep their financial status quo.
 
If Microsoft screws up their Courier tablet....

If Microsoft screws up their Courier tablet like they also screwed up Vista and also the Zune all bets off for how much Apple could be worth!

Apple's 205 Billion dollar value also puts more pressure on Microsoft to get the forthcoming product right which has not been their strength in the past!

Marcus
 
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