Click to enlarge

Source: Daring Fireball

 

Fascinating chart via John Gruber looking at the relative change in market capitalizations of four of the largest publicly trading tech companies.

The ongoing strength of Amazon is nearly amazing as the continued weakness in Microsoft.

All the while, Google keeps chugging along . . .

Category: Digital Media, Valuation, Web/Tech

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Apple, Amazon, Google, Microsoft Market Caps (2006- )”

  1. Bam_Man says:

    I’m waiting for Amazon’s share price to pass Apple’s. Market cap would still be only a little more than half, but it would be amazing. No earnings, negligible cash, lots of debt and the same share price as Apple with $40/share+ in earnings, $140/share+ in cash and no debt. Efficient markets.

  2. Bam_Man says:

    I’m waiting for Amazon’s share price to pass Apple’s. Market cap would still be only a little more than half, but it would be amazing. No earnings, negligible cash, lots of debt and the same share price as Apple with $40/share+ in earnings, $140/share+ in cash and no debt. Efficient markets.

  3. loebd says:

    Love the footnote

  4. Scott Frew says:

    Collective earnings from 2006 on (using fiscal rather than calendar years, so probably a little off calendar year readings).

    MSFT 118 billion
    AAPL 102 billion
    GOOG 47 billion
    AMZN 4 billion

    Nor has AMZN grown earnings faster.

  5. wally says:

    Well, Apple has absolutely no ‘moat’ in the Buffett meaning of the word. Microsoft had one. enforced by pretty unsavory practices, but is fast losing it. Both Amazon and Google, however, are establishing positions that will be extremely difficult for a competitor to dislodge. For the long term they are the two best prospects.

  6. constantnormal says:

    I see this as a contest between several corporate philosophies …

    Amazon is all about growth at all costs, retaining no margin for error, no profits to the stockholders (only the hope of profits somewhere over the rainbow…)

    Apple is all about significant profit margins, tightly focused products across various consumer markets in walled gardens with significant barriers to entry, and no debt … they want to be able to survive anything (a consequence of Jobs earlier experiences with near-dead companies). It remains to be seen if they will distribute profits to stockholders that grow along with their cash hoard …

    Microsoft was all about monopoly power, watching to see where future opportunities were blossoming, then stepping in to buy the businesses … without regard to the quality of Microsoft leadership or management, and using a Darwinian development process internally, with teams fighting each other more than they fight competitors. They are distributing decent dividends, but growth has all but died, as the Road Ahead leaves them behind. Eventually, their cash hoard will run dry, but not for some time.

    Google is a wonderful one-trick pony, with nearly all of their revenue coming essentially from ad revenue. They make no profits whatsoever from Android (it is a gift to Apple’s competitors), self-driving cars, Google glasses, and a host of other promising things that they have recently been terminating, I suppose because they can’t figure out ow to make money from them. Good thing that Google figured out advertising, and was able to effectively tie it to search (and a number of other things), or they would be gone by now. It is a company with more raw talent than any of the others, I think, but that is a resource that lacks effective management to focus it and turn it into profits. They are the wild card in all this.

    I think that the charting of market caps (an indicator of nothing more than investor popularity, in my eyes) is interesting, but it tells you absolutely nothing regarding the comparative performance of these companies in an operational sense. PE is a similarly flawed metric, but not nearly as broken as market cap. Wanna see a fun chart? Plot PE of AMZN, AAPL, MSFT, GOOG and CCL. Does it tell you anything useful?

    I think that more useful metrics would include things like ROI, ROE, price-to-free-cash-flow … yes those are all fundamental metrics, and not-so-much TMA things, but I contend that you don’t want to evaluate a company for investment solely on the basis of timing and emotional indicators. Those are fine things to time when to buy and sell, but not-so-good at telling one what to buy and sell.

    YMMV.