As the market capitalizations of Apple and Amazon top a trillion dollars, it is a good moment to stop and look at how both companies reached that pedestal, not just for just business lessons, but also to make investment judgments on both stocks. While it is undeniable that both companies have been successful over the last two decades, their operating paths have been very different, with Apple using the iPhone to generate ever-increasing operating margins and huge positive cash flows, and Amazon evolving into a disruption platform, entering new businesses and posting high revenue growth, often at the expense of higher margins. I value both companies and find Apple mildly overvalued (by about 9%) and Amazon significantly so (about 35%).
Slides: [ Ссылка ] (with Apple story fixed)
Blog Post: [ Ссылка ]
Valuation Spreadsheets:
Apple: [ Ссылка ]
Amazon: [ Ссылка ]
