Amazon and Apple – stock price and P/E.

Philip Elmer-DeWitt for Apple 2.0 at Fortune:

Amazon, which reported its June earnings on Friday, hasn’t turned a profit for three quarters in a row — a performance that Wall Street rewarded by pushing its stock to an all-time-high

Apple’s P/E ratio is around 10 or 11…Amazon’s is at infinity – read: isn’t measured anymore, but it was around 2800 at the end of last year.

Read the whole thing at the source link. It’s interesting, especially the graphs.

Apple convicted in ebook antitrust trial.

You can read about it elsewhere – it’s all over the web, but here’s the real kicker:

The monopolist in this market, read Amazon, was strengthened by this verdict, which begs the question why Apple, as the newcomer was sued by the Justice Department in the first place, and not Amazon.

Apple will appeal the ruling.

P/E ratios, or fun with numbers.

Amazon’s P/E is around 4.000. Apple’s is at around 10.

If Apple would be treated by Wall Street like Amazon, it’s stock prize would be about 160.000 USD a piece (no, that’s not a typo), and it would be worth …um… 150 TRILLION dollars!

Apple makes more profit each quarter than Amazon EVER made – all quarters combined. Ever.

If you apply Google’s P/E to Apple, Apple’s stock would trade at around 1.000 USD a pop. It’s market valuation would be a cool 1 Trillion USD.

Just sayin’…

Apple’s earnings.

So, profits are up nearly 25% on sales of 26.9M iPhones, 14M iPads, and 4.9M Macs, but Wall Street is disappointed?

Get this: Apple reported Q4/12 profits, PROFITS!, of 8.2 BILLION dollars, and Wall Street is disappointed.

And get this: 36 BILLION revenue in the quarter, 40% gross margin, another cash dividend of 2.65 dollars per share, 41 BILLION net income for FY12, but Wall Street is disappointed…

Now, I don’t hold any shares of Apple, which have been 700+ just a few weeks ago – now they’re at around 600. This begs the question: What the hell is wrong with Wall Street??

I recently read somewhere that if Apple were treated equally to Amazon by Wall Street it would be a 2 – 3 TRILLION dollar company!

See the thing I don’t get: Amazon, or Google for that matter, make a billion a quarter, and in Amazon’s case even lose around 65 million, but their stock is going up. Google’s market cap is (right now) at 222 billion, Apple’s is at 571 billion, so about twice as much, yet Apple makes 8 times more in PROFIT each quarter.

I think Wall Street is stupid, analysts are overpaid monkeys, and people should wake up and smell the coffee.