Apple is huge

From Forbes’s “The World’s Largest Technology Companies In 2021: Apple’s Lead Widens” posted Thursday:

After massive pandemic gains and blockbuster public-market debuts, technology firms tightened their grasp on global business and got bigger than ever over the past year, claiming a record 177 spots on this year’s Global 2000, Forbes’ annual ranking of the world’s largest public companies.

Apple heads up the technology ranks for the sixth-straight year, climbing two spots to No. 6 on the overall list, as surging demand in China helped iPhone sales crush expectations and lifted annual profits to a record $63.9 billion—making Apple the most profitable company in the world. The Silicon Valley firm is also worth more than any other company in the world, boasting a market value of nearly $2.3 trillion when the Global 2000 was tallied on April 16.

Cue the world’s 10 largest tech companies by sales:

apple giant forbes

My take: No. 1 in sales and market cap and growing at double digits. Law of large numbers (LOL) my ass.

14 Comments

  1. Gregg Thurman said:
    You can immediately determine another’s IQ and/or what they took in college, by the way they use the tern ‘law of large numbers’.

    Law of large numbers is a statistical concept that states adding to the sample size, beyond a certain point, does not alter the outcome or make the outcome materially more accurate. It does not mean a firm can not grow further. THAT only happens when market saturation occurs, and the subject firm has not innovated into different product categories.

    Continual growth is a function of innovation outside the firm’s area of expertise.

    You can see this in MSFT under Ballmer’s leadership. Ballmer was a terrific manager, who had zero vision. As a consequence, under Ballmer’s leadership MSFT had become a big, super wealthy, but irrelevant, firm desperately in search of its next trick. There was no innovation happening. Ballmer’s retirement saved MSFT from extinction.

    11
    May 13, 2021
  2. All 10 on that list are dependent the ongoing and increasing use of apps on smartphones & tablets. Most are dependent on the success of products developed by the top 2.
    The poorly informed have been talking about Apple ‘hitting a plateau’ or stagnating or ‘no longer being able to innovate’ for decades.
    Inviting 3rd party app developers to participate in and contribute to the success of iPhones, iPads and the Apple Watch is the reason future innovation is guaranteed. Requirements of the apps drive new technologies into the hardware, creating wonderful (not vicious) cycles of consumer demand for these new inventions. This rolling stone gathers little moss.

    4
    May 13, 2021
  3. Jerry Doyle said:
    Just bought additional shares of my beloved Apple @ $124.825 🙂

    8
    May 13, 2021
  4. Fred Stein said:
    Just saying: #4, Microsoft and #5, Tencent are siding with Epic.

    Epic and Tencent see the growth of the App Store, and seek legal means to steal some of it for themselves.

    4
    May 13, 2021
  5. Fred Stein said:
    OT: Apple’s forward P/E is below 23.

    That’s a safe entry point for investors, who sat on the sidelines or worry about inflation.

    6
    May 13, 2021
    • Gregg Thurman said:
      I think a forward multiple of 20 is where you will see WS get excited about AAPL again. Why 20? It has a nice sound to it, I really don’t think WS knows how to value Apple, but acting in uncommunicated concert (group think) will make it so.

      2
      May 13, 2021
  6. Lalit Jagtap said:
    Apple is growing double digit, while I am waiting for “Apple CAR” and “Apple Glasses”. But as Apple investor for 20+ years, it is great to look back. Specially around 2012 period when our great journalists at NYT, WSJ and wonderful professional Wall Street analysts were worried about LOLN “Here is the rub: Apple is so big, it’s running up against the law of large numbers.” https://www.nytimes.com/2012/02/25/business/apple-confronts-the-law-of-large-numbers-common-sense.html

    0
    May 13, 2021
  7. Daniel Epstein said:
    Alway hard to evaluate how WS values a company. Valuing Market Cap on Revenue only is not usually a good correlation to a stock or companies situation. Growth and profitability tend to distort things both positively negatively. Old style auto companies market Caps often have low ratios in Market Cap to revenue. They have a lot of revenue but are usually not given much credit for it. Many tech stocks have very little revenue but have large Market Caps. How much debt or obligations a company has compared to Assets is a big thing to look at. But quickly let’s compare a few.
    One of my favorite companies ADBE has a market cap of 227 Billion dollars. Revenue of 13.6 Billion. 17.5 x Sales. Why is hard to answer.
    MSFT is valued about 11.49 times Revenue. Much closer to what people traditionally paid for a company in private. Still pretty high.
    Apple is valued about 6.5 times revenue. Is that high? Some people think so. Others say it is worth it. Is it worth a little more than half of MSFT. Maybe the quality of the revenue is different but maybe not.
    Ford for example is trading for about .035 times revenue. Still seems like dead money although always seems attractive if it can get is act together.
    I used CNBC numbers from today for my calculations. Still think Apple is a good stock and a great company.

    1
    May 13, 2021
  8. Duane Bemister said:
    Look at market share for growth.

    5
    May 13, 2021
    • Kirk DeBernardi said:
      @ Duane Bemister —

      Bingo!

      2
      May 14, 2021

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