In August 2018, Apple hit $1 trillion in market capitalization, a value that was much greater than
Question:
In August 2018, Apple hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap. Currently, Apple's market value is quite larger than Amazon's. However, on October 9, 2020, Apple's share price ($125) was substantially less than Amazon's share price($3,400). 2A) Based on your readings from the textbook, explain why does this difference exists? 2B) Why do you believe investors are willing to pay more to invest in Amazon when it is worth less than Apple? 2C) Which company would you rather invest in and why? You have to pick one. Use at least 2 financial ratios from Chapter 2 to validate your selection. in chapter 2 they discuss n addition to the four financial statements, companies provide extensive notes with additional details on the information provided in the statements. For example, the notes document important accounting assumptions that were used in preparing the statements. Theyoften provide information specific to a firm's subsidiaries or its separate product lines.They show the details of the firm's stock-based compensation plans for employees and the different types of debt the firm has outstanding. Details of acquisitions, spin-offs, leases, taxes, and risk management activities are also given. The information provided in the notes is often very important to a full interpretation of the firm's financial statements.