“You could very well make the argument that Apple is a value stock relative to FAANG/Tech”. Yeah that’s what I was getting at. But I wasn’t saying it with bang on the desk certainty. Because one thing I’ve learned is to never be too certain about anything in the stock market. I just thank God sometimes I didn’t listen to people that are paid millions of dollars to be analysts, if I had I would’ve sold Apple at about 1/4 of what it is now.
Well yeah it wasn’t a direct comparison. The companies are considered and basically two different groups. Apple sells a ton of equipment. In many ways it still is an iPhone company. Amazon tries to sell equipment. But I’ll bet the Amazon developed tech item sales is only a tiny fraction of their overall sales.
The reason I discussed them together, is because number one they’re both FAANG stocks, and number two they’re both well-known stocks, and number three they’re both in the “technology“ sector. But classifying companies nowadays is difficult because you know Amazon is also in the retail sector as well as Apple.
They are interesting companies to discuss, compare and contrast, because of their similarities and because of their distinct differences as well.
The whole discussion of PEs was just to look at one numerical factor compared to different companies using that factor as a pivot point. In reality, a high PE for Amazon is not the same obviously as a high PE for Apple. Imagine Apple with a 50 PE what would it be selling for now? Probably close to $600 a share. Doesn’t compare Amazon has $120 or so PE. Amazon is at 120 for different reasons. I was just trying to illustrate that while PE is an instructive measure, it is almost meaningless in a vacuum
