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Apple's revenue can rival that of Finland's GDP, the market value will break trillion, but will soon be overtaken by Amazon.

via:博客园     time:2018/5/12 17:31:43     readed:949


Tencent Technology News, according to foreign media reports, Apple will soon become the first US listed company with a market value of 1 trillion US dollars, but even if it achieves this milestone, it may soon be exceeded by Amazon.

In 1976, Steve Jobs co-founded Apple in the garage. Today, the company's annual revenue has reached 229 billion U.S. dollars, exceeding the gross domestic product of countries such as Portugal and New Zealand. .


Finland GDP, Apple Revenue, Portugal GDP, Amazon Revenue, Alphabet Revenue and Puerto Rico GDP (from left to right)

After announcing a $100 billion stock repurchase program last week, and after "Warren Buffett" Warren Buffett announced that it has increased its stake in Apple, Apple's market value soared to a record $934 billion on Thursday. .

Since the better-than-expected quarterly earnings report was released on Tuesday, the company’s share price has risen 12%, and it is only 8% below its market value of $1 trillion.

CFRA analyst Angelo Zino pointed out that Apple’s recent service revenues, including music streaming and online storage, have increased by 31%. He increased the Apple stock target price from US$195 to US$210, which means that Apple’s market value will reach US$1.03 trillion. In addition to Chino, the target price given by at least 12 other analysts will also allow Apple's market value to reach 13 digits.

But Apple is not the best thing, because Amazon may surpass this iPhone maker and take the lead in breaking the $1 trillion market value threshold, or quickly surpassing Apple's achievement of this milestone. At present, Amazon is the second largest listed company in the United States with a market value of approximately US$780 billion.

At the same time, Saudi Arabia stated that it plans to have Saudi Aramco (Saudi Aramco) in the country conduct an initial public offering. The value of this oil company is estimated to be about US$2 trillion.

Although the market value was $148 billion lower than that of Apple on Friday, Amazon's revenue and stock prices rose faster than Apple. Amazon stocks are highly sought after by investors. The price-earnings ratio is more than 100 times, and Apple's price-to-earnings ratio is only 15 times.


Amazon, Microsoft, Alphabet, Facebook, Apple, and S&P Index P/E Ratios

Driven by optimism about iPhone X, Apple's share price has risen 24% in the past year. However, the market demand for iPhone X did not meet investors' expectations. Now, the bulls are starting to pay attention to Apple’s share return plan.

In contrast, Amazon’s share price has risen by 70% in the past 12 months, and revenue from e-commerce and cloud computing has increased its revenue by 31%.

With the development of the Amazon music and video business, as well as Fire TV and Alexa smart home devices, the company has become increasingly competitive with Apple and Google's parent company, Alphabet.


The five largest technology giants in the United States have combined their revenue for the year (US$ 1 billion)

With a market capitalization of US$765 billion, Alphabet is the third-largest listed company on Wall Street. Microsoft has followed the market value of US$749 billion. In February of this year, Amazon surpassed two companies in one fell swoop.


Current Market Value of Apple (Yellow), Amazon, Alphabet (Green), and Microsoft (Purple)

Including Facebook, the top five US listed companies now account for 15% of the total market value of the S&P 500 Index ($24 trillion).


The proportion of the five technology giants' market value in the S&P 500 Index

To be sure, past share price performance cannot accurately predict the future. However, if Apple's share price continues to increase at the rate of the past year, the company's market value will reach US$1 trillion in September. And if Amazon's share price continues to rise at the rate of the past year, it will reach $1 trillion in around October and will soon surpass Apple.

If you continue the performance of the past year, Microsoft's market value will not exceed one trillion US dollars until 2019, and Alphabet will have to reach 2020.


If you can maintain the performance of the past year, Amazon (yellow) market value will exceed Apple (blue) in October this year.

However, most Wall Street analysts are not so optimistic. According to Thomson Reuters, analysts' average target price for Apple's stock over the next 12 months is 6% higher than the current price, to 200 US dollars, which will increase Apple's market value to 980.3 billion US dollars.

The average target price for Amazon analysts is $1850, which is 15% higher than the current price, which will bring its market value to 988 billion US dollars. In addition, analysts expect that Microsoft will rise 12% in the next year to reach US$845 billion. Alphabet's market value will increase by 16% to US$874 billion.

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