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Apple is worth more than Google. Huh? This doesn’t make sense to me.
Let’s start with the obvious: Google makes more money than Apple does. It had earnings of $10 billion
over the past 12 months, compared to $8 billion for Apple. And while both companies’ earnings are growing fast, Google’s are growing faster.
But here’s the clincher: Google’s earnings were on less than $20 billion of revenue — that’s what I call a profit margin. Apple, by contrast, needed more than $30 billion of revenue to get its $8 billion of gross profit.
Of course, when it comes to stock valuations, the present doesn’t matter nearly as much as the future. So what does the future hold for these two franchises?
They’re both […]
Original post by Felix Salmon, Portfolio.com
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