Question
In August 2018, Apple was the first company to hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap.
In August 2018, Apple was the first company to hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap. In August 2020, it was the first to hit $2 trillion. Currently, Apple's market cap is $400 billion higher than Amazon.
However, on October 9, 2020, Apple's share price ($125) was substantially less than Amazon's share price($3,400).
A) Based on your readings from the textbook, explain why this difference exists?
B) Why do you believe investors are willing to pay more to invest in Amazon when it is worth less than Apple?
C) Which company would you rather invest in and why? You have to pick 1.
Use at least 2 of the financial ratios to your advantage.
https://www.cnbc.com/2018/08/02/apple-hits-1-trillion-in-market-value.html
https://www.cnbc.com/2020/08/19/apple-reaches-2-trillion-market-cap.html
https://howmuch.net/articles/companies-trillion-dollar-club
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