Amazon to pass Apple

by Riddhi Patel

In the race to be worth one trillion dollars, publicly-listed Amazon runs-up right behind Apple inc. Amazon’s shares traded have been as high as $2,050.50; the online retailer’s expected to obtain a revenue growth of 32 percent for 2018, in comparison with Apple’s revenue to jump 14.9 percent. With Amazon being an e-commerce titan that has seen its net product sales surge, it is not a matter of if, but when, the retailer’s stock market valuation eclipses that of Apple. Amazon’s ever-increasing dominance in diversifying virtually every corner of the retail industry, brings a more promising return value for stockholders because their stock prices more than doubled in the past year. However, many continue to believe that Apple’s developmental rate, monetary record, valuation, and combination of operating performance, makes it not only the most attractive stock, but the most secure.

The primary cause of that is Apple has begun returning significant amount of capital back to their shareholders (typically quarterly) out of profit made from revenues, along with share repurchases. Year-to-date, the rate Apple’s revenue is converting into real profit has been consistently rising but that does not mean it is the superior performer. That is predominantly because their counterpart (Amazon) has already achieved their same goal and has done it in a much faster time span. Apple took over 37 years to reach the net value of one trillion dollars, while amazon only took 21. Not only that, analysts expect Apple sales to go down third quarter because consumers are waiting for their new products to be launched and sales as older models to go out, causing Amazon’s stock to take flight over Apple, at an exponential rate.  

All in all we have seen multiple oppositions on who will finally take over Apple throughout the years, from Apple vs Microsoft and Apple vs Alphabet; but the trademark company always triumphs. Maybe in a few short years there will be a newly crowned winner: Amazon.

 

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