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Is Apple more valuable than Google?

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Apple more valuable than GoogleThe CEO of Google has not been the subject of an Oscar-nominated film, nor has posed for Vogue. Larry Page seems like a pretty boring guy. I have heard many teleconferences Google since the company went public nine years ago, and I can say that the most exciting thing is when Page starts talking about the “super excited” that is. He is not Mark Zuckerberg, and definitely not Marissa Mayer.

But who cares? While Facebook and Yahoo generate a lot of attention for his devotion to the person of the chief, Google simply dedicated to his: accumulating exorbitant profits.

The signing of the famous search engine last week reached a record high. The market value of the company now stands at about 350,000 million. Google is now the third largest company in the U.S. in terms of market value. Surpassed rival Microsoft earlier this year and is quickly catching up to Exxon Mobil , whose current value is approximately 415,000 million.

Could Google surpass Exxon soon? It is not entirely impossible. A difference of 65,000 million dollars may seem large. But stop for a moment in the graph, which shows how much ground he has won Google, Exxon this year alone.

Google shares have risen nearly 50% this year. Exxon have won only 9%. It may not be reasonable to think that the signing of Page continue climbing so as brutal during 2014. But let’s say Google papers rose by 25% from current levels while Exxon up 5%. If that happens, Google would move slightly to Exxon.

Of course, both actions could increase, and both could collapse if the bull market finally decides to take a break. Or Exxon could increase if energy prices soar, while Google takes a breather. I’m not suggesting that Google decisively surpass Exxon, but is not a remote possibility.

Google, in short, remains one of the stars of the technology sector. Although there are legitimate concerns about slowing growth of technology giants like Microsoft, IBM, Oracle and Cisco , investors should not worry about that with Google.

Those other four companies, which industry leadership took turns at some point during the last decade, rates projected earnings growth of nearly 10% annually over the coming years. Google, meanwhile, expects to record an average increase in profits of about 17% annually over the coming years.

The share price of Google reflects this enthusiasm. The papers quoted at 20 times 2014 earnings estimates. They are cheap but not so expensive as to give altitude sickness …especially when compared to the firm Page with some of its main rivals.

The post Is Apple more valuable than Google? appeared first on Free Cash at Your Door.


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