Apple was briefly worth more than Google

Was it buzz over the iPhone App store? Its tie-up with Best Buy? The Mac's comeback vs. the PC? Worries about an online advertising slowdown?

We're not sure why, but Tom Petruno on the Money & Co. blog points out that, on Wednesday, Apple's market valuation surpassed Google's for the first time since the search giant went public in August 2004, based on Bloomberg calculations. Google has moved back into the lead today, and Petruno notes that it appears to be the better priced of the two.

If anyone still cares about price-to-earnings ratios, Apple shares now sell for 34 times this year’s estimated earnings of $5.21 a share. Google’s P/E is about 26 based on expected earnings of $19.67 a share.

Oh, and both companies' market values are still dwarfed by Microsoft's.

-- Chris Gaither

Photo by Steven Senne / Associated Press

Comments

[Paul Chapel]

Uh, Apple's market valuation is a very big deal. Apple's market cap is bigger than both Dell and HP COMBINED. Microsoft sells their Windows licenses directly to PC manufacturers, a captive audience that has no alternative except for Linux, which is not ready for primetime.

Apple sells directly to consumers in retail stores and despite being a little overpriced, are selling Macs in record numbers. So you tell me, what would you rather have? A high profit margin business or a cutt-throat bargain basement PC company?

[mhale]

Uh, Microsoft's founder and Chairman took off without so much as a hiccup in the company's day-to-day operations or it's shares.

Apple's stock slipped at the mere rumor that it's chief was ill.

So, which seems the more stable company, not dependent on one person to continue it's path to continued success?

[Frank]

^ I would DEFINITELY rather have Gate's bank account over Jobs'. Case Closed. I win.

[Tyler]

I doubt that Apple will surpass Google again anytime soon. It could happen in the future, but as far as I know, apple is done unveling popular things for the time beings.

[erichansa]

Their stocks are actually doing better than Microsoft's. Microsoft has greater over-all capital and revenue, but its stock performance has been poor compared to Apple and Google this past decade.

[Christopher]

@Paul - From a business perspective, I'd rather have the company that makes the most money.....

[Thomas Reddock]

Really, I'd choose free. I think that most people would move to a Mac, however the switch can be daunting as it means unlearning what you knew, and relearning the way of the mac or Linux or whatever you use. I agree that its a great thing that Apple's value has been growing though,

while I am a PC man myself, the concept of Apple growing in worth can only help the market instead of it being dominated by Microsoft, if only Apple would be a little bit flexible and sell their OS for install on non "Mac" brand hardware, such a choice would probably cause their market share to grow, not because of the sales of the software, but because it will greatly increase the chance of non-mac users to make the switch.

[PJ]

@frank - Well, since you have neither, and never will, you lose.