Google Surpasses Apple as World's Most Valuable Company

Discussion in ' News Discussion' started by MacRumors, Feb 1, 2016.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Google's parent company, Alphabet, is encroaching on Apple's status as the most valuable company in the world, reports CNN. While Apple is currently on top, a surge in Alphabet shares today gave it a market valuation of $533.4 billion, briefly surpassing Apple's valuation of $532.7 billion on a 1 percent stock drop.

    Alphabet shares dropped shortly after, leaving Apple at a higher valuation, but the numbers could shift again tomorrow following Alphabet's first financial earnings report this afternoon. Alphabet is expected to announce overall revenue growth of close to 15 percent with a 20 percent increase in earnings per share.


    Over the course of the last several months, Apple shares have fallen steadily, dropping its peak valuation of $740 billion to ~$540 billion. Despite record earnings for the first fiscal quarter of 2016, with revenue of $75.9 billion and net quarterly profit of $18.4 billion, Apple has not bounced back from rumors that the iPhone 6s and the iPhone 6s are not selling well and concerns that the company has reached "peak iPhone" with no replacement product on the horizon.

    Apple is in for a rough second quarter as the company is expected to announce its first ever decline in iPhone sales and its first year-over-year revenue drop in thirteen years. Currency headwinds caused by a strong U.S. dollar are costing Apple a significant percent of its earnings compared to the year-ago quarter.

    Update 1:05 PM: Alphabet is up another 8 percent in after hours trading following a strong earnings report, meaning Alphabet will almost certainly open trading tomorrow at a higher valuation than Apple.

    Article Link: Google Surpasses Apple as World's Most Valuable Company
  2. Mr. Donahue macrumors 6502

    Mr. Donahue

    Sep 17, 2014
    Prolly cause Apple Music isn't working right. I tweeted Timmy this morning. He better get on that. This is unacceptable.
  3. johnalan macrumors 6502

    Jul 15, 2009
    Dublin, Ireland
    A) This is completely non news.
    B) I'm glad two top tier tech companies are the biggest in the world. It was such a shame when the biggest companies were archaic oil dealers.
  4. Sloppy.Joe macrumors regular


    Sep 3, 2014
    In the upstairs attic
  5. thekeyring macrumors 68040

    Jan 5, 2012
    Wow, Wall Street really does look at growth over absolute earnings. After all, if you remove iPhone from Apple's balance sheet, it still makes roughly the same as Google.
  6. MartinAppleGuy macrumors 68020


    Sep 27, 2013
    Macbook should have had two USB ports.
    iPad Pro should have ran a tweaked version of OS X geared for touch.
    iMac 4K should have came with an SSD.
    Apple TV should have had 4K compatibility for use with home videos shot on iPhone 6S.
    iPad Pro should have 128GB base storage, and have the 32GB model only sold as an enterprise model.

    These are all things people seem to agree on, and there isn't much of an argument for Apple to have done this. Just start finishing your products before you release them Apple...
  7. Mackinjosh macrumors 6502a

    Aug 21, 2014
    Good. Google actually tries to innovate. Apple continues to regurgitate.
  8. GFLPraxis, Feb 1, 2016
    Last edited: Feb 1, 2016

    GFLPraxis macrumors 604


    Mar 17, 2004
    The thing I really don't get is how Apple is trying to pose the iPad Pro as a monster 4K video editing machine, yet there's no way to actually get 4K content on it. WiFi isn't fast enough to move Raw DV 4K content over.

    The iPad Pro needs something akin to Thunderbolt to be used for video editing in the way Apple wants to imply it can be.

    Disclaimer: My wife has an iPad Pro for artwork and we both love it. I just can't imagine anyone editing 4K video on it. It'd be a huge pain just to get the video on it, not to mention storage.
  9. garirry macrumors 68000


    Apr 27, 2013
    Canada is my city
    Agreed. They themselves forget that if they do this instead of being money-greedy, much more people will want to purchase those products instead of looking for alternatives.
  10. thekeyring macrumors 68040

    Jan 5, 2012
    Google shares what they're working on, Apple doesn't. Look at Google Glass - was that a successful product? No. If Apple had a product that flopped like that, there would be talk in this forum of firing Tim Cook.
  11. Jaaz macrumors newbie


    Sep 10, 2014
    You mean the archaic oil companies powering the world nowadays?
  12. Michael Goff macrumors G4

    Michael Goff

    Jul 5, 2012
    Good news: iOS is OS X geared for touch. Go back and watch the keynote where Steve Jobs introduced the iPhone.
  13. cycomiko macrumors 6502

    Oct 14, 2008
    Archaic oil companies enabling shipping of product from China to your doorstep
  14. KPOM macrumors G5

    Oct 23, 2010
    There will be more calls for a change at the top at Apple now. Alphabet is seen as the true innovator, and Android the clear winner in mobile.
  15. Orlandoech macrumors 68040


    Jun 2, 2011
    Salt Lake City, UT
    Because they are GOD at making consumers believe what they need, so consumers consume and Apple wins once the item is purchased. Then all the workarounds, adapters, etc are solely on the owner, not Apple.
  16. KPOM macrumors G5

    Oct 23, 2010
    Remember, the Street doesn't care about profits. They care about profit growth. It looks like Apple is a one-trick pony in a declining industry, while Alphabet is pushing forward. It might be time for Apple to use some of that cash to make a big acquisition. That would be better than using it for more stock buybacks, which will just reinforce the image that Apple is a declining business.
  17. Shaun.P macrumors 68000


    Jul 14, 2003
    Omicron Persei 8
    I don't understand how a company with much less revenue and profit (and money in the bank) can be worth more than Apple?
  18. npmacuser5 macrumors 6502a


    Apr 10, 2015
  19. KPOM macrumors G5

    Oct 23, 2010
    It's all about growth. The concern is that Apple has peaked, and its profits have nowhere to go but down, while Alphabet's are growing.
  20. AppleMark macrumors 6502a


    Jun 17, 2009
    The CCTV Capital of the World
    Then how will they get you to 'upgrade' and keep their market share (and company value) high enough to surpass Google next year, if they do not get you to buy a product at least twice?

    Apple's product policy is not releasing the best possible device, but just good enough to be what they feel is class leading, to get you to buy the product again with 'updates' they could have implemented on launch day the next year.
  21. djgamble macrumors 6502a

    Oct 25, 2006
    MBPs/Minis should come with PROPER graphics cards, expandable RAM and space for a new HD. Even with high-end MBPs/Minis you're crippled by in-built graphics (even if you pay $5k+ for a machine with maxed out RAM, maxed out HD, retina display and the fastest i7). IMO this is a massive farce...
  22. Mac Fly (film) macrumors 65816

    Mac Fly (film)

    Feb 12, 2006
    Which company makes more money? Besides, totally different companies. Stock price is ******** based on speculation.
  23. yaxomoxay macrumors 68000


    Mar 3, 2010
    what destroyed apple is the lack of OSX on iPads.

  24. RedOrchestra Suspended

    Aug 13, 2012

    well only selling 2 million iPad Pros in the LAUNCH quarter after all the hype Apple gave it last September has to be pretty disappointing. How about they tell us actual iWatch sales.
  25. Lazy macrumors 6502

    May 27, 2003
    Silicon Valley
    True that that's why, but Apple's P/E is less than 11, while Alphabet's is 35. If Apple just maintained their current profits they'd still be way ahead of Google for a long time. Apple is clearly undervalued while Google has a lot of optimism and trend-betting factored into its price.

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