First Trillion Dollar Company Will Be Google
Google needs to grow at roughly 35 percent per year for the next five years to reach a $1 trillion market capitalization by 2020. Apple, who's currently in the lead, will reach the same point with only 13.4 percent over that time. BUT, while Google is behind by $130 Apple's slowing growth threatens to turn the tables soon. Here are the factors
Googles sales continue to skyrocket through the success of it's acquisitions. But what else are we seeing in the chart below? Highly ambitious forays into self-driving vehicles, drone technology, artificial intelligence and other 'next economies' could be what's deepening the the gulf between sales and profits. The low profit-high sales strategy first popularized by Amazon tells us that Google is playing valuation driven game in order to overthrow Apple.
The chart below illustrates the shrinking Gap between Google and Apple and is very much the reason why we have out bets on Google for becoming the world's first trillion dollar company.
This is what I think. Apple has lost it's competitive advantage. Few people look to the brand for game changing creativity leaving only one more asset at their disposal; a good name. The problem? A good name can be fragile. If the Iphone 8 does less than what's expected, or any signs of distress become public Apple is ripe for contraction. So, our bet is on Google. Who do you think will be the first trillion dollar company?
