There are three major tech companies that seem to draw everyone’s attention. As with most successful companies, there is controversy about what they do right, wrong, and what they don’t do at all. Generally speaking, people (investors in particular) either love what a company is doing or hate it. Let’s take a look at where some of these feelings are derived from, and what position they appear to be in for investors.
There is no doubt about it, Apple Inc. (NASDAQ:AAPL) has one of the most dedicated customer bases ever. Yet, there are some people that hate everything about the company. Most companies would do anything to achieve more than $13 billion in profits for one quarter, yet some people were disappointed with Apple’s results. A lot of people expected more because of how well the company has done in the past, and some people claim it should perform better if it’s such a great company.
With the stock recently hitting two year lows, some people are yelling, “It’s over sold, buy Apple now!” While the other portion of people are ecstatic because they think the company is finally beginning to crumble. My thoughts? I think the company’s stock has struggled recently, but there is no reason to think the company shouldn’t succeed in the future. In the past five years, Apple has seen revenues increase 413% as opposed to Google Inc (NASDAQ:GOOG)’s 21% increase. Google’s revenues have been up and down the past few years while Apple’s has steadily grown.
With over 74% of Google’s revenues being derived from search ads, mobile technology hasn’t provided the revenues for them as much as for Apple. Approximately 26% of Google’s revenues are acquired from mobile search ads, Google phones, and Motorola Solutions Inc (NYSE:MSI). For Apple, the iPhone alone consisted of 53% of the company’s revenues in 2012. With mobile becoming such a huge demand, Apple seems to be leading the way in that category.
Wednesday morning, Amazon.com, Inc. (NASDAQ:AMZN)’s shareholders experienced growth that placed the stock at an all-time high. However, it wasn’t all good news for the company. Earnings were lower than expected, they lowered guidance, and yet still hit an all-time high. For some reason Amazon’s stock seems completely unrelated to its business. While operating margin profitability increased for the company, Amazon’s shareholders seem to have the motto “We believe”.
Amazon may prove to be the website of the century, but gives no reason to believe it will crash, or sky rocket. The company already has established itself as the omnipresent retailer of the world. Over all, profitability has been decreasing since roughly the mid 2000’s.