business

Are Samsung and IBM the next to pass Microsoft?

Remember when AAPL passed MSFT?
Remember when GOOG passed MSFT?
Remember when IBM passed MSFT for awhile?

Market Caps as of September 7, 2013:

  • Microsoft: $259,490,000,000
  • Samsung: $202,874,184,480
  • IBM:  $200,5000,000,000

More telling, of course, is their stock. Here are 10-year charts:

MSFT:
Microsoft

Samsung:Samsung

IBM:IBM

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What are you doing, Amazon?

I’ve been questioning Amazon for years.

Now others are noticing it, too:

How over-valued is Amazon’s stock? Compare P/E (share price / earnings per share) ratios:

  • Amazon: 3,500
  • Google: 23
  • Oracle: 16
  • Microsoft: 15
  • Walmart: 14
  • Apple: 10
  • Exxon: 10

(All the other companies make money.)

Apple, Microsoft, Google, Amazon compared

Here is a chart comparing the Net Income of each company for the past five years:

net quarterly income

Here is a chart comparing the stock performance of each company for the past five years:

Screen Shot 2013-01-24 at 7.28.03 PM

Here is some commentary about the charts:

  • Everything makes sense. Except Amazon’s stock price. Geez.
  • I’d like to see Samsung in the charts (but I couldn’t find their quarterly profits for the past five years, and they are not traded in the US).

Why is amazon’s P/E 3,000?

The past week, amazon.com’s P/E has been around 3,000.

3,000.

Apple is around 13. Microsoft is around 16. Google is around 21.

Amazon doesn’t make money, yet their P/E is 3,000.

Amazon has the 2nd highest P/E in the world (after Lamar Outdoor Advertising, which also doesn’t make much money. Kior has negative earnings, so they don’t actually have a P/E).

I really don’t know what is going on.

(Though I know something is.)