Tech Stock Revenue Growth: Apple’s Doesn’t Cost Much, Nor Does Google’s
Looking at tech stocks with market caps of $50 billion or more, on the prowl for some revenue growth, one is stuck perusing the YCharts Stock Screener how cheap Apple (AAPL) remains despite sales growth of 73%. Especially when compared to other big tech companies.
Note that Qualcomm (QCOM), with revenue growth of about 40%, is a lot pricier. Amazon (AMZN), with revenue growth of about 35% is ridiculously pricey because its profits have plunged as it hands out free shipping to boost sales. Google (GOOG), with 25% revenue growth, might seem cheap if it wasn’t being compared to Apple. And Intel (INTC), revenue growth of 21%, is downright cheap, growing at less than one third the rate of Apple.
Among the slower-growing tech behemoths, valuations are lower but revenue growth is a lot lower. Cisco (CSCO), basically the same PE as Apple, has about 11% revenue growth. International Business Machines (IBM), also about the same PE as Apple, has 2% revenue growth. Microsoft (MSFT) is cheap with a PE of about 12, but its revenue growth is only about 5%. And Oracle (ORCL) is less cheap at a PE of about 16, and its revenue growth is less than 3%.
Priced into Apple is enormous skepticism that it can continue its growth, which is reasonable given its enormous size.
Filed under: Company Analysis