Latest news with #marketcap
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Will Apple Reclaim Its Title as the Largest Company in the World by Market Cap? The Answer May Surprise You.
For more than a decade, Apple (NASDAQ: AAPL) was the largest company in the world by market capitalization. And while it still has a market cap of $3 trillion as of this writing, it has been surpassed by Microsoft and Nvidia in the last few years as cloud computing and artificial intelligence (AI) computer chips take the market by storm. It was one of the longest reigns in market history, but Apple's status as top market cap leader has officially come to an end. Will it make a comeback and reclaim its No. 1 spot? In the next few years, at least, the answer is quite clear for investors. Slower growth than its peers In order to compare Apple with other trillion-dollar market cap peers, the first thing to do is look at growth. Microsoft has grown its revenue by 36% over the last three years. Nvidia has grown its revenue by over 300%. Apple? Its revenue is only up 3.3% in the last three years, not growing much at all and greatly trailing the rate of inflation. Fewer consumers are buying iPhones every year while new products like the Vision Pro flopped. It looks like this will continue over the next few years as well. Microsoft and Nvidia are benefiting immensely from AI and its impact on demand for cloud computing and semiconductor products, where both companies are leaders. Apple has failed to capture any share of these rapidly growing sectors, which is why these other "Magnificent Seven" stocks are charging ahead of it in market capitalization. If these trends hold, the other cloud and AI players such as Amazon and Alphabet may pass Apple and send the stock further down the market cap rankings list. Is the valuation cheaper? Growth is not the entire picture with a stock. investors also need to consider valuation and the current earnings multiples of Apple, Microsoft, and Nvidia. On the one hand, look at the trailing price-to-earnings (P/E) ratio and see that Apple's P/E of 31 is well below Microsoft's P/E of 35 and Nvidia's P/E of 46. This would make Apple stock cheaper in a vacuum and could help it regain some ground in the market cap race. However, in all likelihood, these two competitors deserve to trade at higher earnings multiples than Apple because of faster growth in earnings per share (EPS). Similar to revenue, both Microsoft and Nvidia have grown EPS at a much faster pace than Apple while Apple's EPS has barely budged in the last few years. Expect this to continue over the next five years. Apple may see its EPS fall over the next few years. Its high-margin services and software revenue is under attack from antitrust lawsuits. The App Store was ruled a monopoly and Apple is now forced to allow third-party payment processors on mobile applications. Its huge payment from Google for default search engine status is also at risk of getting nullified due to a current lawsuit against Google. Both of these developments may hurt Apple's earnings power over the next few years. AAPL EPS Diluted (TTM) data by YCharts Why Apple will not reclaim its status as the largest company in the world I think it is unlikely that Apple will reclaim its throne atop the market cap leaderboard. It has minimal growth avenues to drive revenue higher while a company like Nvidia is posting 69% year-over-year revenue growth in its latest quarterly results. This dichotomy means that when it comes to market cap, Apple will fall further behind Nvidia and Microsoft in the years to come. Apple is a risky stock to buy right now. It is growing slowly, trades at a premium P/E ratio, and has risks coming that could hurt its future profitability. Avoid buying this stock for the time being. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
13 hours ago
- Business
- Yahoo
Holcim's (VTX:HOLN) earnings growth rate lags the 20% CAGR delivered to shareholders
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. One great example is Holcim AG (VTX:HOLN) which saw its share price drive 109% higher over five years. In the last week shares have slid back 3.2%. Although Holcim has shed CHF1.6b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Holcim achieved compound earnings per share (EPS) growth of 7.6% per year. This EPS growth is lower than the 16% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Holcim's TSR for the last 5 years was 153%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. It's good to see that Holcim has rewarded shareholders with a total shareholder return of 19% in the last twelve months. That's including the dividend. Having said that, the five-year TSR of 20% a year, is even better. Importantly, we haven't analysed Holcim's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying. We will like Holcim better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13 hours ago
- Business
- Yahoo
Institutional investors have a lot riding on BAE Systems plc (LON:BA.) with 82% ownership
Given the large stake in the stock by institutions, BAE Systems' stock price might be vulnerable to their trading decisions A total of 13 investors have a majority stake in the company with 51% ownership Recent sales by insiders We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. A look at the shareholders of BAE Systems plc (LON:BA.) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 82% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And things are looking up for institutional investors after the company gained UK£1.7b in market cap last week. The one-year return on investment is currently 40% and last week's gain would have been more than welcomed. In the chart below, we zoom in on the different ownership groups of BAE Systems. See our latest analysis for BAE Systems Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. BAE Systems already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BAE Systems' earnings history below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in BAE Systems. Looking at our data, we can see that the largest shareholder is Capital Research and Management Company with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.9% and 5.1% of the stock. After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our data suggests that insiders own under 1% of BAE Systems plc in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own UK£51m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 13% stake in BAE Systems. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for BAE Systems you should know about. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20 hours ago
- Business
- Yahoo
SWS Capital Berhad First Quarter 2025 Earnings: RM0.007 loss per share (vs RM0.001 profit in 1Q 2024)
Revenue: RM26.2m (down 30% from 1Q 2024). Net loss: RM2.12m (down from RM222.0k profit in 1Q 2024). RM0.007 loss per share (down from RM0.001 profit in 1Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period SWS Capital Berhad shares are down 6.5% from a week ago. Before you take the next step you should know about the 2 warning signs for SWS Capital Berhad (1 doesn't sit too well with us!) that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Almadex Minerals First Quarter 2025 Earnings: EPS: CA$0.01 (vs CA$0.006 in 1Q 2024)
Net income: CA$626.4k (up 72% from 1Q 2024). EPS: CA$0.01 (up from CA$0.006 in 1Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Almadex Minerals shares are down 1.4% from a week ago. It is worth noting though that we have found 4 warning signs for Almadex Minerals (2 don't sit too well with us!) that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
