Akshay blogs: CAN GOOGLE BEAT APPLE?

CAN "GOOGLE" BEAT "APPLE" IN THE UP COMING YEARS?

GOOGLE:-

Google Inc. is an American multinational technology comapany that specializes in internet-related services and products. These include online advertising technologies, serch, cloud computing, software and hardware. Google was founded in 1998 by larry page and sergey brin while they were Ph.d. students at stanford university, in California. Together, they own about 14 percent of its shares, and control 56 percent of the stockholder voting power through supervoting stock. They incorporated Google as a privately held company on September 4, 1998.

APPLE:-

Apple Inc. is an American multinational technology compa ny headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple's consumer software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud.

WILL GOOGLE BEAT APPLE?

It wasn't that long ago that many investors assumed Apple (AAPL,Tech30) would get there first.

At its peak price earlier this year, Apple had a market value of nearly $775 billion. Alphabet, which I'm now going to refer to as Google (GOOGLE,Tech30) for the rest of this story, was worth $366 billion at the time.

But Apple's stock has plunged from its highs in recent months due to fears that iPhone sales are slowing -- in part due to the popularity of smartphones that run on Google's Android operating system.

Apple is still the world's most valuable company. But Google is nipping at its heels.

Apple's market value is currently $605 billion while Google is worth $527 billion.

In 2015:-

Sure, a nearly $80 billion gap may still sound like a lot. But it's not really. Google only needs to go up 15% to beat Apple's current valuation -- provided that Apple stands still, of course.

Google has more momentum right now. The stock is up 43% this year while Apple's shares are down 2%.

Google's search business is thriving, particularly on mobile devices. And Google is getting more and more revenue from YouTube.

Analysts think Google's profits will grow at a much faster rate than Apple's as well.

Wall Street is forecasting that earnings per share for Google will be up 17% a year, on average, over the next few years compared to a projected annual growth rate of 12%. All estimates cited in this story are from FactSet Research.

So let's say, for the sake of argument, that Google continues to outperform Apple next year.

According to the research: