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Interesting to compare to the other Trillion dollar company: Apple (AAPL) earned $11.04/share last quarter and trades for ~$228 today Amazon (AMZN) earned $12

by a_c_s 8y ago

Interesting to compare to the other Trillion dollar company: Apple (AAPL) earned $11.04/share last quarter and trades for ~$228 today Amazon (AMZN) earned $12.63/share last quarter and trades for ~$2,040 today edit: formatting

uptown 8y ago
More useful with the approximate shares outstanding: Apple: 4,915,138,000 Amazon: 485,227,000
- conanbatt 8y ago
  Thats taken into account in earnings/share.
  - abtinf 8y ago
    True, but the GP specifically called out the difference between eps and share price of the two companies "interesting", which makes it looks like share price is an interesting number independent of the number of shares issued. It is not.
    - njarboe 8y ago
      Earning per share and cost per share are useful to look at as a pair regardless of the number of shares issued. It's the return on capital. Tells one something regardless of market cap.
deleted 8y ago
[deleted]
mywittyname 8y ago
For a more complete picture: Amazon Revenue 52.89B 39.34% Net income 2.53B 1186.29% Diluted EPS 5.07 1167.5% Net profit margin 4.79% 821.15% Operating income 2.98B 375% Net change in cash 2.92B - Cash on hand 19.82B 50.14% Cost of revenue 30.63B 30.62% Apple Revenue 53.26B 17.3% Net income 11.52B 32.14% Diluted EPS 2.34 40.12% Net profit margin 21.63% 12.66% Operating income 12.61B 17.12% Net change in cash -13.09B 483.36% Cash on hand 31.97B 72.16% Cost of revenue 32.84B 17.64% Revenue for Amazon is climbing faster than for Apple. And Amazon's cost of revenue is growing significantly slower than revenue while Apple's costs of are growing slightly more than revenue.
- kisstheblade 8y ago
  Could someone explain the math here. So amazon is worth almost 500 times their income!? That doesn't make any sense even if they are growing like crazy and investing their profits or something.
  - crispyporkbites 8y ago
    Net Income, not Income They traditionally operate on low net incomes so they can kill other products with low or negative margins, and own entire categories, instead of wasting funds paying taxes and shareholders.
    - justboxing 8y ago
      > They traditionally operate on low net incomes so they can kill other products Or as Walter White says in Breaking Bad. "Corner the Market, then increase the Price. Basic Economics."
  - hcnews 8y ago
    Amazon has historically been evaluated against their revenue instead of income.
- synaesthesisx 8y ago
  By these metrics Apple seems pretty undervalued IMO
- justboxing 8y ago
  Can someone explain whether "Diluted EPS" / Diluted Earnings Per Share is significant in valuing a stock, and also how that number is calculated and used in investing? Amazon's #s in this regard are over 2X Apple's but there is a %age that is showing 1167% for Amazon vs 40.12% for Apple. What does this mean? Amazon Diluted EPS 5.07 1167.5% Apple Diluted EPS 2.34 40.12%

by a_c_s 8y ago

uptown 8y ago

More useful with the approximate shares outstanding: Apple: 4,915,138,000 Amazon: 485,227,000

conanbatt 8y ago
Thats taken into account in earnings/share.
- abtinf 8y ago
  True, but the GP specifically called out the difference between eps and share price of the two companies "interesting", which makes it looks like share price is an interesting number independent of the number of shares issued. It is not.
  - njarboe 8y ago
    Earning per share and cost per share are useful to look at as a pair regardless of the number of shares issued. It's the return on capital. Tells one something regardless of market cap.

deleted 8y ago

[deleted]

mywittyname 8y ago

For a more complete picture: Amazon Revenue 52.89B 39.34% Net income 2.53B 1186.29% Diluted EPS 5.07 1167.5% Net profit margin 4.79% 821.15% Operating income 2.98B 375% Net change in cash 2.92B - Cash on hand 19.82B 50.14% Cost of revenue 30.63B 30.62% Apple Revenue 53.26B 17.3% Net income 11.52B 32.14% Diluted EPS 2.34 40.12% Net profit margin 21.63% 12.66% Operating income 12.61B 17.12% Net change in cash -13.09B 483.36% Cash on hand 31.97B 72.16% Cost of revenue 32.84B 17.64% Revenue for Amazon is climbing faster than for Apple. And Amazon's cost of revenue is growing significantly slower than revenue while Apple's costs of are growing slightly more than revenue.

kisstheblade 8y ago
Could someone explain the math here. So amazon is worth almost 500 times their income!? That doesn't make any sense even if they are growing like crazy and investing their profits or something.
- crispyporkbites 8y ago
  Net Income, not Income They traditionally operate on low net incomes so they can kill other products with low or negative margins, and own entire categories, instead of wasting funds paying taxes and shareholders.
  - justboxing 8y ago
    > They traditionally operate on low net incomes so they can kill other products Or as Walter White says in Breaking Bad. "Corner the Market, then increase the Price. Basic Economics."
- hcnews 8y ago
  Amazon has historically been evaluated against their revenue instead of income.
synaesthesisx 8y ago
By these metrics Apple seems pretty undervalued IMO
justboxing 8y ago
Can someone explain whether "Diluted EPS" / Diluted Earnings Per Share is significant in valuing a stock, and also how that number is calculated and used in investing? Amazon's #s in this regard are over 2X Apple's but there is a %age that is showing 1167% for Amazon vs 40.12% for Apple. What does this mean? Amazon Diluted EPS 5.07 1167.5% Apple Diluted EPS 2.34 40.12%