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.

@tcarmody: Missing the point…or: How Amazon can’t compete with Apple

Tim Carmody has an interesting piece over at The Verge entitled Amazon to Apple: The Game Starts now, and while all he says isn’t really wrong, he’s still missing the point.

Go ahead and read it at the link above. I’ll wait.

Read it? Ok, good.

Here’s the problem: Amazon made 7 million bucks last quarter. Apple made 8.8 billion bucks in its “disappointing” last quarter. Think about that.

Amazon will never, ever be able to take on Apple as long as it loses substantial money on every Kindle sold, while making almost zero money on all other items it sells. Simple as that.

About the Mat Honan “hack”.

via Wired:

In the space of one hour, my entire digital life was destroyed. First my Google account was taken over, then deleted. Next my Twitter account was compromised, and used as a platform to broadcast racist and homophobic messages. And worst of all, my AppleID account was broken into, and my hackers used it to remotely erase all of the data on my iPhone, iPad, and MacBook.

In many ways, this was all my fault. My accounts were daisy-chained together. Getting into Amazon let my hackers get into my Apple ID account, which helped them get into Gmail, which gave them access to Twitter. Had I used two-factor authentication for my Google account, it’s possible that none of this would have happened, because their ultimate goal was always to take over my Twitter account and wreak havoc. Lulz.

Had I been regularly backing up the data on my MacBook, I wouldn’t have had to worry about losing more than a year’s worth of photos, covering the entire lifespan of my daughter, or documents and e-mails that I had stored in no other location.

Those security lapses are my fault, and I deeply, deeply regret them.

..and that my friends, is really all you need to know.

Yes, the hackers were clever. Yes, Amazon and Apple fell for social engineering. Yes, it’s Mat Honan’s fault.

@parislemon on Apple’s vs. Amazon’s last quarter.

MG Siegler:

…$7 million. Amazon made $7 million dollars last quarter on sales of $12.83 billion. That’s insane. Let’s pretend the sales were $12.837 billion. Amazon kept the 7, everything else vanished.


…Apple’s “disappointing” quarter included $8.8 billion in profit. Or maybe I should write it this way: $8.800 billion — if that last zero was a seven and you removed everything before it, that would be Amazon’s profit.

Think about that for a second. Which one is the stock you would rather own?