Date
25 July 2017
Alphabet could hit US$734 billion in the next 12 months while Apple could be worth as much as U$1.1 trillion, according to forecasts. Photo: Reuters
Alphabet could hit US$734 billion in the next 12 months while Apple could be worth as much as U$1.1 trillion, according to forecasts. Photo: Reuters

Alphabet overtakes Apple in market value — for now

In a sprint, Google wins the race for the most valuable company trophy but the contest for market cap dominance is a marathon.

So, Apple prevails.

For now, Alphabet is basking in its new status as market leader after it reported strong results on Tuesday, driving its shares up 4.4 percent to US$546.5 billion.

That eclipsed Apple’s market cap of US$534 billion after its own shares slipped 1.2 percent.

But Alphabet’s time at the head of the pack may be short-lived.

Alphabet could be valued at US$628 billion in the next 12 months, Reuters reports, citing the median share forecast of 31 analysts which puts the stock at US$924.

But in that time, Apple is expected to pull away to US$748.5 billion at the current median price target of US$135 by 49 analysts.

That’s not all.

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

Billionaire investor Carl Icahn, an Apple investor, said in May that the iPhone maker is “dramatically undervalued” and should trade at US$240 per share.

At that price, the company would be valued at about US$1.30 trillion.

Alphabet rejigged its operating structure last year to separate its core Google business from its so-called “moonshots”.

The two tech giants have long wrestled for the top spot as the likes of IBM  have declined.

Once allies, they fell out after Google launched its own Android mobile operating system in 2008.

Alphabet’s stock has surged 43 percent in the past year.

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