Alphabet aims to surpass Apple in value by 2025, based on growth projections

From Nasdaq: 2024-09-22 07:17:00

In the past decade, Alphabet briefly surpassed Apple in market cap, but Apple is now worth $3.3 trillion while Alphabet is worth $1.97 trillion. Apple generates half its revenue from the iPhone, while Alphabet’s revenue grew at a CAGR of 18%. Both companies are investing in AI, but Apple outperformed Alphabet due to its pricing power and less exposure to the advertising market. Regulators are scrutinizing both companies, but Alphabet faces more immediate pressure. Alphabet could surpass Apple in value by 2025 if it maintains its current trajectory.

Alphabet trades at 18 times forward earnings while Apple trades at 28 times. Analysts expect Alphabet’s EPS to grow at a CAGR of 20%, projecting a stock rise of about 13% to $180 by 2025. Apple’s EPS is expected to grow at a CAGR of 11%, with a potential stock rise of 8% to $234 by 2025. Alphabet could overtake Apple by 2025 if it addresses near-term threats and increases its valuation. The Motley Fool Stock Advisor team does not currently recommend investing in Alphabet.



Read more at Nasdaq: Will Alphabet Be Worth More Than Apple by 2025?