The Market’s Apple Pessimism [CHART]

The Market’s Apple Pessimism [CHART]
AAPL

The recent focus of this blog has been on how deeply pessimistic the market has become with respect to Apple.  Here is another take on the same theme.  The table below compares the four largest tech companies: Apple, Google, Amazon and Facebook.  Notice that although Apple still has the largest market value (equity plus debt) that is due in large part to its huge hoard of cash and investments.  With respect to operating value, Apple is now well behind Google with Facebook and Amazon nipping at its heels.  This is true in spite of the fact that over the last twelve months Apple had before-tax operating income more than 3 times that of Google, 9 times that of Facebook, and 20 times that of Amazon.  The market sees a bleak future for Apple indeed.  Particularly, when compared to its major competitors.

 

 

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

 

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Bradford Cornell is an emeritus Professor of Financial Economics at the Anderson School of Management at UCLA. Prof. Cornell has taught courses on Applied Corporate Finance, Investment Banking, and Corporate Valuation. He is currently developing a new course on Climate Change, Energy and Finance. Professor Cornell has published more than 125 articles and four books on a wide variety of topics in applied finance. Professor Cornell is also a managing director at BRG where he heads the practice on Climate Change, Energy and Finance. In addition, he is a senior advisor to the Cornell Capital Group and to Rayliant Global Advisors. In both capacities, he provides advice on fundamental investment valuation.
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