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Alphabet overtakes Apple as the world's most valuable company based on enterprise value

Posted: , by Alan F.

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Alphabet overtakes Apple as the world's most valuable company based on enterprise value
On August 11th, 2001 we told you that based on market capitalization (stock price multiplied by shares outstanding), Apple had become the world's most valuable company surpassing Exxon-Mobil at the top. By early 2013, Apple's shares had dropped nearly 40% after peaking on the launch date for the Apple iPhone 5. Exxon-Mobil briefly took over at the top once more. But the tech titan soon regained the title as the world's most valuable company.

However, the combination of a weak stock market and forecasts from some analysts that Apple will soon report its first year-over-year decline in iPhone sales, has some investors running for the exit. While Apple still is ranked number one based on its $535 billion market cap, it has fallen to number two when using enterprise value. This involves adding debt and subtracting cash, and provides a more accurate look at the value of a company's business.

Apple's enterprise value of $393 billion has the company second to the $420 billion enterprise value of Alphabet. Yes, that is the holding company that owns Google. In computing its enterprise value, Apple is being penalized for its large holdings of cash.

While 43 analysts on Wall Street are still posting a target of $143, one by the name of Adnaan Ahmad has a target of $85 for the stock. He sees similarities between what Apple is going through and what happened to former smartphone powers Nokia and BlackBerry. In case you want to write off Ahmad as a lone nut, consider that with Apple currently trading at $99, the stock is a lot closer to his target than it is to the rest of the Wall Streeters that follow the company.

"Looking back at history on when a company starts to face a growth question mark, [it] does not bode well for Apple in the next two years unless it comes up with a major new product category."-Adnaan Ahmad, analyst

Apple's stock fluctuations affect Main Street just as much as it does Wall Street. Most mutual funds are loaded with the shares which means that you could be the world's number one Apple hater, but still have to rely on the company's success to have a prosperous retirement.

source: FinancialTimes

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posted on 22 Jan 2016, 11:11 18

1. SirYar (Posts: 351; Member since: 02 Jul 2014)


Significance of this fact to the everyday user = None.

posted on 22 Jan 2016, 11:30 22

5. Wiencon (Posts: 1883; Member since: 06 Aug 2014)


But we're geeks

posted on 22 Jan 2016, 11:52 14

9. Johnnokia (Posts: 1093; Member since: 27 May 2012)


The illustration of this analyst is very true.
Apple don't get Nokia's lesson. In 2008, Nokia had around $48 billion cash in the bank. They didn't really invest this amount and try to extend its bussiness beyond the handset manufacturing. However, Nokia acquired NavTeq, Siemens network, and Motorola Solutions networking.

On the other hand, Apple has $180 billion cash in the bank, and they rarely acquire any big companies. They are still relying on iphone, iPad, and App store for almost 75% of its revenue.
That is extremely dangerous, because any new innovative Operating System might destroy Apple completely afterwards. The cash reserves will not save them, and it would be burned very quickly on the enormous loss and right down. Same what happened to Nokia after it burnt most of its cash on its burning platform and the miserable path of Microsoft.
Apple must extend its business and get used of that cash before it is too late. No one can stay in the top forever.

posted on 22 Jan 2016, 12:02 2

11. Arch_Fiend (Posts: 2505; Member since: 03 Oct 2015)


Even if a new innovative OS enters the tech world. It wouldn't wipe out ios or android and with Apple being the only company that can produce ios handsets. it's in even better shape to take on competition than android.

posted on 22 Jan 2016, 12:06 7

15. Rafishant (Posts: 261; Member since: 13 Oct 2015)


Lol.
Samething said about Symbian and BlackBerry.

posted on 22 Jan 2016, 13:18 2

27. MANOFSTEEL (Posts: 67; Member since: 25 Nov 2015)


The difference in this case Apple create this market and everybody jumped on this direction, nokia and BB refused to follow that lead and got burned by time they decided to it was too late

posted on 22 Jan 2016, 16:37 4

56. tedkord (Posts: 11727; Member since: 17 Jun 2009)


But since 2007, Apple had mostly been doing the following.

posted on 22 Jan 2016, 15:51

51. Arch_Fiend (Posts: 2505; Member since: 03 Oct 2015)


I never said that tho.

posted on 22 Jan 2016, 12:26 7

17. Johnnokia (Posts: 1093; Member since: 27 May 2012)


BlackBerry is the only one that can produce BB phone.
Nokia was the only one that manufacured MeeGo OS phones and controlled over 70% of Symbian.

Your point?

posted on 22 Jan 2016, 12:36 1

19. Hexa-core (banned) (Posts: 2131; Member since: 11 Aug 2015)


Pointless!

posted on 22 Jan 2016, 14:09 7

37. Well-Manicured-Man (Posts: 316; Member since: 16 Jun 2015)


You are right but because of a different reason.

This is not about companies but about people. Look at Apple's history. It was a star in late 70ies and throughout the 80ies. During the 90ies, the company was almost dead. Then, Steve Jobs came back and turned the company into a fortune.

Apple can go down fast if another geek similar to Steve Jobs founds a company with a great idea or becomes a CEO of a competitor of Apple. Such a person can start a brand equally strong and with similar values like the brand Apple.

Tim Cook can only manage and optimize what Steve Jobs has left but he is the wrong guy to turn a market around or re-invent a business. His character is too weak for this. Many people hated Steve Jobs, but everyone doing so has to admit one thing: He had the "fuck you" mentality to take great risks and do great things.

posted on 23 Jan 2016, 04:15 3

75. Jimrod (Posts: 1380; Member since: 22 Sep 2014)


Well-Manicured-Man's point is completely correct.

In my experience the best companies always have one person, someone completely driven (and considered by many to be an ass-hole because of this) who pushes through their ideas, ignoring anyone else.

What is happening at Apple is that they're sinking back to mediocrity because they now have a "committee man" at the helm, someone without drive and imagination but will ask everyone else what they want. When that happens you end up with the "Homer car" from the Simpsons...

posted on 23 Jan 2016, 11:26 1

82. Well-Manicured-Man (Posts: 316; Member since: 16 Jun 2015)


People want to be lead, they want a leader. Steve Jobs was a leader and that is why so many people followed him.

posted on 22 Jan 2016, 15:54

52. Arch_Fiend (Posts: 2505; Member since: 03 Oct 2015)


Yeah But Those Phones Weren't/Aren't Very Good In My Opinion Anyway. The iPhone Is A Great Device And I Can't See It Never Not Being An Option In The Smartphone World.

posted on 22 Jan 2016, 12:05 1

14. justrt (Posts: 391; Member since: 10 Jul 2014)


Apple are making a car. That will be a significant extension of their business

posted on 22 Jan 2016, 13:32 1

31. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


I do not see Apple succeeding in the Auto industry if you ask me. Granted what their intentions are at this moment is anyone's guess, but if they are doing what you insisted (Actually designing a car), then I see it being a massive flop. Google on the other hand is less interested in designing cars than say developing a navigation system that removes the need for a human driver. What they are working on is something that can be implemented into any and all cars from any manufacturer. And with the amount of resources they've poured into this project, and with their current track record, they're likely to reach a greater success that what you suspect Apple is planning to do with the automotive industry, by simply competing with the rest of the world.

posted on 24 Jan 2016, 07:47

86. joey_sfb (Posts: 5757; Member since: 29 Mar 2012)


I don't think the comments so far is being fair to Tim Cook. I dislike him but I know his business decision is sound.

Yes! He is not the marketing leader but he does bet on several winner etc Apple Pay and Apple Music. Products line such as Apple watch and iPad Pro would bomb but it does not cost Apple much financially.

Nokia on the other invested in a number of big acquisition that it could not digest. So Apple is doing fine for now.

posted on 22 Jan 2016, 21:36 1

70. jroc74 (Posts: 6006; Member since: 30 Dec 2010)


This is why I compare Apple to Nintendo.

Huge cash reserves based on a singular hit product, product family.
Both companies are basically one dimensional.

Apple better take notes of what happened/happening to Nintendo....it can happen to them just as easy. Only difference between the 2 is Apple was able to capitalize off their hit, Nintendo wasnt.

posted on 22 Jan 2016, 13:31 1

30. lyndon420 (Posts: 4403; Member since: 11 Jul 2012)


He's most likely an iOS user...this type of article probably wouldn't resonate with him unless it said apple was king.

posted on 22 Jan 2016, 14:13 1

38. SirYar (Posts: 351; Member since: 02 Jul 2014)


Actually I am a hardcore Andorid fanboy that so happens to hate Apple. Go figure!

posted on 22 Jan 2016, 14:14 1

39. SirYar (Posts: 351; Member since: 02 Jul 2014)


Actually I am a hardcore Andorid fanboy that so happens to hate Apple. Go figure!

posted on 22 Jan 2016, 17:48

61. keithtae (Posts: 437; Member since: 25 Mar 2015)


Omg, how can I upvote you 100 times?

posted on 23 Jan 2016, 05:08 1

76. Hexa-core (banned) (Posts: 2131; Member since: 11 Aug 2015)


More like downvote.

posted on 22 Jan 2016, 11:25 3

2. Tziggy14 (Posts: 443; Member since: 02 Sep 2014)


I highly doubt this is a big deal since Alphabet(Google) is not a fashion brand like Apple.

I remember there were countless media coverage of Apple overtaking Microsoft and ExxonMobil years back. Only Google fanboys will make this a big deal.

posted on 22 Jan 2016, 19:38 2

68. lyndon420 (Posts: 4403; Member since: 11 Jul 2012)


It's a big deal for everyone else when they're the ones on top, so why can't it be a big deal for Alphabet as well? Creating this new company that houses everything together was a brilliant idea for them because it gives scope to how big 'Google' really is and what they're involved in.

posted on 22 Jan 2016, 21:40

71. jroc74 (Posts: 6006; Member since: 30 Dec 2010)


Thats ok, Google has still come a long way from being just a search engine.

And because you think Apple is a fashion brand....them being #1 in this category woulda been a big deal? So enterprise doesnt matter huh....

Ask Blackberry about that. They are still alive thanks to enterprise, corporations.

posted on 22 Jan 2016, 22:53

72. Tziggy14 (Posts: 443; Member since: 02 Sep 2014)


Google still makes 90% of their income from search.

posted on 23 Jan 2016, 05:13 1

77. Hexa-core (banned) (Posts: 2131; Member since: 11 Aug 2015)


Wrong! Google makes the majority of it's income from ads.

posted on 23 Jan 2016, 23:59

84. jroc74 (Posts: 6006; Member since: 30 Dec 2010)


That could be true...but I do believe they are much more than just a search engine these days.

posted on 22 Jan 2016, 11:26

3. SuperAndroid507 (Posts: 283; Member since: 06 Jan 2014)


Perhaps they're going to make that rumored electric "Tesla-like" car to bring that "new product category"

posted on 22 Jan 2016, 13:43

32. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


But is it really a "new" product if there's already something like it on the market? The way I see it is people are expecting innovation, revolutionary concepts, not Apple's take on the Tesla Model S.

posted on 22 Jan 2016, 16:39

57. Unordinary (Posts: 1735; Member since: 04 Nov 2015)


Is the new 2016 Vette Stingray a new product since there are other cars on the road? No, by that logic. Bummer.

posted on 22 Jan 2016, 16:56

59. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


Now I'm no motor head, but looking up the 2016 Vette Stingray, I see nothing more than another sports car that's probably out of the range of the general public. There's nothing that sets it aside from the competition where people go, OMG, I've never seen anything else like it before, like Apple did with the iMac, iPod, and especially the iPhone.

posted on 22 Jan 2016, 18:34 1

63. ibend (Posts: 4649; Member since: 30 Sep 2014)


its just impossible for apple to make electric car that can compete with tesla, even other car manufacturer that spend decades of electric car research still struggle to compete with tesla...
unless.. apple buy tesla... lol

posted on 22 Jan 2016, 19:46

69. lyndon420 (Posts: 4403; Member since: 11 Jul 2012)


Wouldn't happen as Google already invested in Tesla, SpaceX, etc. Apple wouldn't have a clue what to do with a company like Tesla other than maybe try to pretty it up somehow in the name of fashion, but Alphabet/Google could totally pull it off when you look at all the resources they possess.

posted on 22 Jan 2016, 11:28 1

4. mariow2015 (Posts: 40; Member since: 08 Jan 2014)


They aren't growing anymore because they already have the majority. As much as I despise apple products, the majority of people I know own an iPhone.

posted on 22 Jan 2016, 11:39

6. Tziggy14 (Posts: 443; Member since: 02 Sep 2014)


Majority what?

Android users eventually graduate to the iPhone once the income goes up. It's been proven as said by Tim Cook himself.

posted on 22 Jan 2016, 11:43 16

7. TheWeasel (Posts: 403; Member since: 26 Dec 2014)


Not sure if you're being sarcastic or you actually believe what you just wrote.

posted on 22 Jan 2016, 12:07 4

16. TerryTerius (Posts: 1801; Member since: 10 Apr 2014)


As many times as I've seen that logic employed, he/she probably believes it.

posted on 22 Jan 2016, 12:49 6

23. tedkord (Posts: 11727; Member since: 17 Jun 2009)


Calling that logic is a Herculean stretch.

posted on 22 Jan 2016, 12:53

25. warrenellis93 (Posts: 164; Member since: 21 Jul 2011)


I would agree with that because the only thing we android users could boast about in the past was we had the larger screen sizes available, once the 6 plus was released many android users switched over. I wouldnt switch anytime soon because the iphone i would get is too expensive for me proving the comment above is accurate

posted on 22 Jan 2016, 13:13 9

26. tedkord (Posts: 11727; Member since: 17 Jun 2009)


Proving nothing. I could afford an iPhone for each day of the week. The iPhone 6 Plus was out, yet I chose the Note 5. Why. It's better, plain and simple.

posted on 22 Jan 2016, 13:20 3

28. SenorThrottles (Posts: 284; Member since: 23 Dec 2015)


I honestly find it annoying when people say people only get Android phones because they don't have enough money to buy an iPhone. I chose the Nexus 6P over every other phone in the market, purely because I prefer android and wanted an AMOLED display (after owning a S6 I honestly couldn't go back to LCD)

posted on 22 Jan 2016, 14:52 2

42. HouTexan (Posts: 439; Member since: 08 Jan 2012)


It's dumb because the vast majority do not buy their phones outright - they pay on a monthly plan.

posted on 22 Jan 2016, 13:51

33. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


Better is subjective based off individual priorities that vary from user to user. I personally love the Android OS.

All that being said, it is quite possible that one company can simply fade away into irrelevance simply because the competition becomes so overwhelming in market share. Better or not, if the Apple platform has reached its plateau then its market share can only go down.

posted on 22 Jan 2016, 17:52

62. keithtae (Posts: 437; Member since: 25 Mar 2015)


I could get my husband and I a house too if I want to, but we are both still using an s6 edge +. Why? Becuase that's what we prefer. I don't get what was his point.

posted on 23 Jan 2016, 07:32 3

78. lyndon420 (Posts: 4403; Member since: 11 Jul 2012)


Larger screens? That's it? What happened to the sdcards, choice of OEM's, removable batteries, customization options, widgets, live wallpapers, free GPS navigation, multitasking, etc etc etc. Android has been and likely always will be a more capable OS when compared to iOS.

posted on 24 Jan 2016, 18:00

87. TechieXP1969 (Posts: 10125; Member since: 25 Sep 2013)


Really? I could go to the Apple store right now and take my AMEX and buy $50,000 worth of iPhone, and yet I don't own one.

There are lots of people who have the income to buy an iPhone, like everyone who bought Notes and any of the S6 models and other phones too.

What you don't seem to understand, people who have a decent job can buy any top end phone on a payment plan.

Not everyone wants an iPhone. Get over it?

posted on 22 Jan 2016, 11:46 1

8. kraj.snps (Posts: 12; Member since: 31 Jul 2012)


Why is the writer so hurt with this news? Calling the analyst "lone nut", "world's number one apple hatter"... what?

Come on people... you are a phone news company... have some self control and be impartial

posted on 22 Jan 2016, 12:03 2

12. TerryTerius (Posts: 1801; Member since: 10 Apr 2014)


You seem to have misread what was stated. The author said "in case you want to write him off as a lone nut" consider his projections are closer to Apple's current stock value versus what Wall Street is projecting. In other words, he said the dude may be right and it would be folly to assume that Apple's stock price cannot fall.

In what way is that bias? That's just factually correct.

And he said that even if you are an Apple hater, a lot of people's mutual funds are tied up in Apple stock. So even if you personally dislike the company, you may have a stake in how well they do. Which is also true. You seem to have just skimmed through and read what you wanted to read, versus what was actually written.

posted on 22 Jan 2016, 12:39 2

20. Tizo101 (Posts: 396; Member since: 05 Jun 2015)


Alan F is usually bias but not today - his article have been on point and so is this one.

posted on 22 Jan 2016, 15:59

54. willard12 (Posts: 1693; Member since: 04 Jul 2012)


That last statement was a generalization that pretty much applies to any investor. The owners of Hobby Lobby hate birth control as a part of their insurance plans to the point where they took it to the Supreme Court. Yet, they have investments in drug companies that make birth control.

I'd imagine many Android-haters have stock in Google. I also would guess that many who support environmental causes have stock in Exxon-Mobile, privacy advocates have stock in Facebook, and Mitt Romney who said he hated out-sourcing had a trust that invested heavily in firms that sent jobs overseas.

To say that a lot of people's mutual funds depend on Apple is a comment that could have been written by Captain Obvious. You can take out the name Apple and substitute it with a thousand other companies and the statement would be true. So, what's the point of it other than to sway opinion?

posted on 22 Jan 2016, 12:00

10. Arch_Fiend (Posts: 2505; Member since: 03 Oct 2015)


Adnaan Ahmad: I am writing him off as a lone nut if he thinks Apple mobile is going to end up like Nokia or BB. Apple produces the only ios smartphone, it will not end up like Nokia anytime soon if ever.

posted on 22 Jan 2016, 12:04

13. TerryTerius (Posts: 1801; Member since: 10 Apr 2014)


He didn't say that Apple would end up as Nokia or BlackBerry. He said that what Apple is going through is similar to what they went through.

posted on 22 Jan 2016, 13:57

36. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


The only thing constant in life is change. Anyone who says otherwise is just fooling themselves. Apple is not immune to making bad decisions, and they are more than capable of inadvertent self destruction.

posted on 22 Jan 2016, 15:55

53. Arch_Fiend (Posts: 2505; Member since: 03 Oct 2015)


I Know That LOL.

posted on 22 Jan 2016, 17:02

60. TerryTerius (Posts: 1801; Member since: 10 Apr 2014)


People seem to forget that Apple has already gone through various swings thorough the spectrum of success.

posted on 22 Jan 2016, 18:38

64. ibend (Posts: 4649; Member since: 30 Sep 2014)


thats when steve still there... he's gone now

posted on 22 Jan 2016, 19:15 1

67. Scott93274 (Posts: 4671; Member since: 06 Aug 2013)


The biggest swing they had was when they fired him from his own company then brought him back in the mid 90's.... no chance of that happening again.

posted on 23 Jan 2016, 10:34 2

80. VZWuser76 (Posts: 4214; Member since: 04 Mar 2010)


"no chance of that happening again."

We can rebuild him. We have the technology. We can make him better than he was. Better, stronger, faster. He is the 200 billion dollar man.

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