Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In August 2018, Apple hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap. Currently, their market caps are

In August 2018, Apple hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap. Currently, their market caps are $400 billion apart. However, Apple's share price is substantially less than Amazon's share price. Based on your readings from the textbook, explain why this difference exists. Additionally, why do you believe investors are willing to pay more to invest in Amazon when it is worth less than Apple? Which company would you rather invest in and why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions