Last time I checked, MSFT had double digit decrease in revenues and profits. Why is Mr Market rewarding it with such a high P/E?
I guess a short on MSFT is the perfect complement for a long AAPL.
The big divergences precede Apple’s new product introductions: 2005-2006 before iPhone, 2009 before iPad, 2013-2014 before Watch and Pay.
Now the divergence is the biggest (on the log scale at least). Does this mean that the next product introduction will be the most important yet?
Autonomous cars are an inevitability, which we’ve known for a while, but the remaining questions we’ve had for a while doesn’t concern the technology, but rather the regulations. Rather than wait for the government to say something, it looks like manufacturers are just saying “screw it” and stepping up to the plate themselves.
And this concludes the debate about responsibility. Let’s get them on the streets now.
[…] when we say ‘mobile’ we don’t mean mobile just as when we said ‘PCs’ we didn’t mean personal. This isn’t about the screen size or keyboard or location or use. Rather, the ecosystem of ARM, iOS and Android, with 10x the scale of Wintel, will become the new centre of gravity throughout computing. It will take over things like IoT and wearables in one direction and, in due course, the data centre in the other, and it will push onto the desktop. The smartphone is the new sun.
For Sergey and me this is a very exciting new chapter in the life of Google – the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products–the whole point is that Alphabet companies should have independence and develop their own brands.
Google has always been a lab full of ideas in various stages of execution, but 99% of revenues always came from the ad business. They can restructure and refocus as much as they want, but the fact is that nothing else will move the needle for investors anytime soon. So I guess the +6% that this breaking news incited after hours will vanish in due course.
Long term, though, Larry and Sergey have all the more reasons to make a mark again.