Apple Worth More than IBM
Here’s an interesting bit of stock market trivia from 9to5 Mac. If Apple (AAPL) shares open anywhere near the 186 mark they passed in after-the-bell trading yesterday, the company’s market capitalization ($161 billion) will, for the first time, pass IBM’s ($156 billion).
Who’s the Big Brother now?
Since several year, Big Brother is Microsoft!
With Apple now worth more on paper than
IBM and Intel. Could there be a stock split in the near future for Apple?
I’d view this as a bad thing actually. When you compare the details it paints an ugly picture for Apple, or a really nice one for IBM.
The P/E ratio for Apple is 47.37 whereas IBMs is 17.19. Saying that investors are paying almost 3 times as much for each dollar of income that Apple produces.
If I were an Apple Stock owner, I think that this would be a good time to sell. It might still go up for a while, but at some point the market will readjust.
As for Who is the Big Brother. When translated into hard currency, Apple is still incredibly small. 19B in Revenue with about 1.9B in Net Income, versus 90B in Revenue and 9B in Net Income.
The numbers really speak for themselves…
It’s also higher than Intel (INTC - $154B).
I would rather say “Who’s your Daddy”!!!
Great point. Interesting to see how Dell is worth about 50% of both too! IBM was smart to sell off hardware to the Chinese. It is all about software and services. Go AAPL, GOOG, RIMM, and LOCM! LOCM is not as well know as these big boys, but they own a mobile 411 patent and the mobile advertising via text message industry is predicted to grow to 1.4 Billion in the next years!!
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Silicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
Very interesting…
Well, IBM has too many competitors in its space whereas Apple has very few competitors and only seems to be building market share. I can see why their cap is higher…but definitely an interesting point you make…
Brandon
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