Apple passes Google's market cap
updated 02:15 pm EDT, Wed July 22, 2009
Apple Passes Goog Mkt Cap
The stock market rally following Apple's record quarterly results has pushed its market cap past that of Google, according to financial tracking data. As of Wednesday afternoon, the combined worth of all of Apple's stock is about $140 billion, or just past the roughly $135 billion of the search engine giant. The milestone comes even as Apple has had a steeper short-term recovery; the company dropped from near the $200 mark last year to as low as $78 in February, or half its current value.
Google has had a softer fall in share price from roughly $510 a year ago to about $425 today, but has had less success with its market cap as its high price has meant significantly fewer shares actually being purchased. The three-month average trading volume for Apple is about 18.9 million shares, or nearly six times as much as Google's 3.2 million.
A large part of the most recent share rush can be attributed to analyst recommendations in the wake of Apple's results. These have highlighted strong iPhone sales as well as better-than-expected Mac sales that defied expectations of an industry-wide decline. Google has posted more modest gains and still depends almost exclusively on web ads for revenue rather than Android or other projects. [via Newsweek]
Nice
07/22, 02:36pm reply
You do know that the volume of trading has no impact on the market cap, right? The shares that are out there, are out there.
njfuzzy
Fresh-Faced Recruit
Joined: Apr 2001
i think
07/22, 04:20pm reply
what the article means to say, is that the relatively high price of a single share of Google discourages trading in it, thus keeping the price down.
I am not sure whether that is relevant, but that is what the meaning seems like to me.
climacs
Fresh-Faced Recruit
Joined: Sep 2001
confusing
07/22, 04:56pm reply
I agree that the article is confusing or misleading. And although theoretically or interest, the concept is market cap is mostly irrelevant. Sure if someone wanted to mount a takeover, the market cap gives some sense of how much money they would have to come up with, it's a somewhat artificial concept for a major corporation. Even if you had $140B burning a hole in your pocket that doesn't mean you could buy the company for that. The fact that you wanted to do so would tend to cause the share price and market cap to soar. Likewise if you have a huge number of Apple shares and decided to cash out, that could hurt the stock price (and therefore market cap). If you don't understand this, don't worry about it. It's not worth a second thought.
malax
Fresh-Faced Recruit
Joined: Aug 2006
Re: confusing
07/22, 05:10pm reply
It is so pointless that, at one point, Apple had a market cap value LESS than the total amount of cash they had in the bank (or at least cash other assets).
testudo
Fresh-Faced Recruit
Joined: Aug 2001
Nevertheless
07/22, 05:10pm reply
I think it's time for a quote:
"I'd shut it down and give the money back to the shareholders."
http://finance.yahoo.com/q/ks?s=DELL Cap: 25.99B
http://finance.yahoo.com/q/ks?s=AAPL Cap:139.83B
kdogg73
Dedicated MacNNer
Joined: Dec 2002
Google SERPs manipulation
07/22, 08:12pm reply
Manipulation of Google Search Engine Results:
http://tinyurl.com/l82sge
Message from Google:
ttp://tinyurl.com/mf9htd
Google magic:
http://tinyurl.com/nbyboj
abykoff
Fresh-Faced Recruit
Joined: Jul 2009
Google SERPs manipulation
07/22, 08:14pm reply
Manipulation of Google Search Engine Results:
http://tinyurl.com/l82sge
Message from Google:
ttp://tinyurl.com/mf9htd
Google magic:
http://tinyurl.com/nbyboj
abykoff
Fresh-Faced Recruit
Joined: Jul 2009