4 ms·

Apple is now worth more than Alphabet, Amazon, and Meta combined

26 points by diceduckmonk 4y ago

lucasknight 4y ago
I have a strong feeling that Meta and Microsoft are going to somehow merge.
- 20after4 4y ago
  Oh no! I don't even want to think about it. That couldn't possibly turn out well.
chmod775 4y ago
Valuations of these kinds of companies rarely make sense. I'm guessing most investors own iPhones. Alphabet and Apple are companies of actually comparable size by revenue, number of employees, profitability, and diversification. Meta is a small company compared to any of them, is not very diversified and constantly at risk of ending like many social network companies before it. Amazon absolutely dwarfs all of them by revenue, number of employees, how successfully it diversified, and how fast these metrics are growing (roughly doubling every two years). If you want to truly appreciate how much of a meme these valuations are, look at Tesla's valuation being ten times that of VW, yet being smaller by an order of magnitude. The market must be expecting this to reverse for the valuation to make any sense.
- diceduckmonk 4y ago
  Valuation isn't just revenue, but also margin. Margin with retail is smaller than say IPhones. As for Tesla vs VW, and the current snapshot of the business, finance is about the projected future cash flows, not present value. Tesla is growing, VW is not.
  - MonaroVXR 4y ago
    How is VW not growing?
  - chmod775 4y ago
    If Tesla was expected to sell to a good chunk of the world population while somehow only selling high-margin vehicles, their valuation in comparison to VW would make sense. However the market for luxury vehicles isn't that large, so Tesla can't be expected to keep high margins if it wants to grow as big as VW. If it wanted to be 10 times bigger than VW, as its valuation would suggest, then close to 100% of all cars sold worldwide would be Teslas (by 2021 numbers). How likely is that, given that it's currently more like 1%? Well either that or it's just another bubble created by overexcitable people. We had a few of those, didn't we?
    - uni_rule 4y ago
      A lot of people aren't even excited about the company anymore, they are excited about the stock itself. Talk about a self-fulfilling prophecy.
- batguano 4y ago
  And Yahoo is bigger than two KFC franchises in Kansas City.
- adam_arthur 4y ago
  And Walmart has more revenue than Amazon. Revenue of a general purpose retailer/ecommerce is not comparable to revenues of other types of companies. The margins on that revenue is always going to be miniscule
barnabee 4y ago
Unsurprising. Ads and user data are a bubble.
Owen69 4y ago
[dead]
THENATHE 4y ago
Laughable at best. Based on global impact alone, Google is ORDERS of magnitude larger than Apple, and thusly should be valued more. Crazy that most investors put such high stake in margins on physical goods as opposed to margins on intangible, "free" data. Google collects basically everything we do and then sells it. They get that for free, so they should have INSANE profit margins. Too bad advertising is such a small business /s

26 points by diceduckmonk 4y ago

lucasknight 4y ago

I have a strong feeling that Meta and Microsoft are going to somehow merge.

20after4 4y ago
Oh no! I don't even want to think about it. That couldn't possibly turn out well.

chmod775 4y ago

Valuations of these kinds of companies rarely make sense. I'm guessing most investors own iPhones. Alphabet and Apple are companies of actually comparable size by revenue, number of employees, profitability, and diversification. Meta is a small company compared to any of them, is not very diversified and constantly at risk of ending like many social network companies before it. Amazon absolutely dwarfs all of them by revenue, number of employees, how successfully it diversified, and how fast these metrics are growing (roughly doubling every two years). If you want to truly appreciate how much of a meme these valuations are, look at Tesla's valuation being ten times that of VW, yet being smaller by an order of magnitude. The market must be expecting this to reverse for the valuation to make any sense.

diceduckmonk 4y ago
Valuation isn't just revenue, but also margin. Margin with retail is smaller than say IPhones. As for Tesla vs VW, and the current snapshot of the business, finance is about the projected future cash flows, not present value. Tesla is growing, VW is not.
- MonaroVXR 4y ago
  How is VW not growing?
- chmod775 4y ago
  If Tesla was expected to sell to a good chunk of the world population while somehow only selling high-margin vehicles, their valuation in comparison to VW would make sense. However the market for luxury vehicles isn't that large, so Tesla can't be expected to keep high margins if it wants to grow as big as VW. If it wanted to be 10 times bigger than VW, as its valuation would suggest, then close to 100% of all cars sold worldwide would be Teslas (by 2021 numbers). How likely is that, given that it's currently more like 1%? Well either that or it's just another bubble created by overexcitable people. We had a few of those, didn't we?
  - uni_rule 4y ago
    A lot of people aren't even excited about the company anymore, they are excited about the stock itself. Talk about a self-fulfilling prophecy.
batguano 4y ago
And Yahoo is bigger than two KFC franchises in Kansas City.
adam_arthur 4y ago
And Walmart has more revenue than Amazon. Revenue of a general purpose retailer/ecommerce is not comparable to revenues of other types of companies. The margins on that revenue is always going to be miniscule

barnabee 4y ago

Unsurprising. Ads and user data are a bubble.

Owen69 4y ago

[dead]

THENATHE 4y ago

Laughable at best. Based on global impact alone, Google is ORDERS of magnitude larger than Apple, and thusly should be valued more. Crazy that most investors put such high stake in margins on physical goods as opposed to margins on intangible, "free" data. Google collects basically everything we do and then sells it. They get that for free, so they should have INSANE profit margins. Too bad advertising is such a small business /s