Apple Stock News
Apple should be worried because the gap between them is getting shorter with time. When we take into account growth momentum and cash stockpiles the gap is in single digits. If you take away Apple’s massive amount of cash of $206 billion, the difference between the two is only about nine percent. If this movement continues, then it appears that Alphabet stock could overcome Apple stock.
Alphabet began with a valuation of $291 billion while Apple started at $491 billion.A strong cash injection from its advertising business through YouTube and on mobile devices caused the stock price to sky-rocket by approximately 38%.
Apple’s stock is only up by about 4% is nowhere near the rise of Alphabets stock. Basically Apples has kept a market pace. The amount of cash that they have has increase by a huge amount. By the end June it was reported that the had a staggering amount of $202.8 billion in liquid cash and market securities.Looking from the perspective of Apple’s market capitalization and net cash position, the company can be valued in the range of $457 billion.
Even though this is a big number we have to remind ourselves that the company started the year with a value of $454 billion. we can see that their value has been static.Having tons of cash on hand is not in and of itself a solid growth strategy. It is shocking to know that just at the beginning of the year the difference between them was almost double.
As we know from the last release of earnings Alphabet Inc beat the estimates.Alphabet has a tiny debt load relative to its size and cash balance of about $73.0 billion. This is three times what the tech giant has spent on various acquisitions in the last decade, this means it is seeing very real returns on its investments.
It’s for these reasons and others that I am confident on the Alphabet stock price, and why I believe it might overtake the Apple stock price to become the world’s biggest company sooner rather than later.