Prediction: 2 Stocks That'll Be Worth More Than Apple 5 Years From Now
With a market capitalization of just a tad under $3 billion, Apple (NASDAQ: AAPL) is one of the largest companies in the world. However, its revenue growth over the past few years has been modest, while much of its stock gains have come from multiple expansions, as its price-to-earnings (P/E) ratio has been increasing.The company also appears to have fallen behind in the artificial intelligence (AI) race, with Apple Intelligence features reportedly consistently running into delays. In addition, some high-gross-margin revenue from a revenue-sharing agreement that allows Google to be the exclusive search engine for Safari on Apple devices is at risk after Alphabet lost an antitrust trial where the agreement was at the center of the case. While the company likely wouldn't lose all of this revenue, there is a risk that some of it would go away if it gave users the option to choose their default search engine. Against this background, the upside for Apple may be limited over the next several years, opening the door for other companies to become larger than Apple. Let's look at two companies that could exceed Apple's market cap in the next five years.Continue reading
With a market capitalization of just a tad under $3 billion, Apple (NASDAQ: AAPL) is one of the largest companies in the world. However, its revenue growth over the past few years has been modest, while much of its stock gains have come from multiple expansions, as its price-to-earnings (P/E) ratio has been increasing.
The company also appears to have fallen behind in the artificial intelligence (AI) race, with Apple Intelligence features reportedly consistently running into delays. In addition, some high-gross-margin revenue from a revenue-sharing agreement that allows Google to be the exclusive search engine for Safari on Apple devices is at risk after Alphabet lost an antitrust trial where the agreement was at the center of the case. While the company likely wouldn't lose all of this revenue, there is a risk that some of it would go away if it gave users the option to choose their default search engine.
Against this background, the upside for Apple may be limited over the next several years, opening the door for other companies to become larger than Apple. Let's look at two companies that could exceed Apple's market cap in the next five years.
