updated 04:43 pm EDT, Wed May 15, 2013
Google I/O sways market in Google's favor
Apple and Google both passed important financial milestones during Wednesday trading, notes The Next Web. While Apple's market value has fallen under $400 billion, Google's value has climbed over $300 billion. The surge in the latter company's worth is being linked to today's Google I/O keynote, where the company showcased several new products, services, and features, such as unified messaging and a Galaxy S4 with stock Android.
Apple does however remain firmly ahead of Google in terms of earnings. The former trades at a valuation approximately one third higher than Google's, with a P/E (price-earnings) ratio just 37 percent as big. Essentially, each dollar of Google profit is valued more highly, as the market expects the company to grow faster.
During the past year, Apple's fortunes have both peaked and undergone a precipitous decline. At one point, in September 2012, shares were trading at $705 apiece; that price has since plummeted to roughly $428. iPhone 5 sales and more conservative guidance from Apple are believed to be among contributing factors.