Alphabet overtakes Apple in market value - for now

Tue Feb 2, 2016 9:50am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Sayantani Ghosh and Supantha Mukherjee

(Reuters) - Alphabet Inc (GOOGL.O: Quote) might win the market cap battle against Apple Inc (AAPL.O: Quote), but will it win the war?

Maybe not.

The median share price forecast of 31 analysts who raised price targets after Alphabet reported strong results on Monday was $924, suggesting that the company formerly known as Google could be valued at $628 billion in the next 12 months.

Apple, tracked by 49 analysts, would be valued at $748.5 billion, at the current median price target of $135.

That's not all.

A look at the most bullish price targets on the companies' shares shows that Alphabet is expected to be valued at $734 billion in the next 12 months, while Apple could hit $1.10 trillion - making it the first publicly listed company ever to be worth more than $1 trillion.

Billionaire investor Carl Icahn, an Apple investor, said in May that the iPhone maker was "dramatically undervalued" and should trade at $240 per share. At that price, the company would be valued at about $1.30 trillion.

Alphabet easily beat Wall Street's forecasts, helped by strong mobile advertising sales.   Continued...

 
Letters spell the word "Alphabet" as they are seen on a computer screen with a Google search page in this photo illustration taken in Paris, France, August 11, 2015. REUTERS/Pascal Rossignol