May 15, 2013 05:46 PM
Apple drops below $400B in worth, Google surpasses $300B
Apple and Google both passed important financial milestones during Wednesday trading, notes <em>The Next Web</em>. While Apple's market value has fallen under $400 billion, Google's value has climbed over $300 billion. The surge in the latter company's worth is being linked to today's <A href="http://www.electronista.com/articles/13/05/15/google.kicks.off.developer.conference/">Google I/O keynote</a>, where the company showcased several new products, services, and features, such as <a href="http://www.electronista.com/articles/13/05/15/hangouts.conversations.to.carry.between.ios.androi d.web/">unified messaging</a> and a <A href="http://www.electronista.com/articles/13/05/15/device.will.be.unlocked.use.unlocked.bootloader.re ceive.timely.updates/">Galaxy S4 with stock Android</a>.<br /><br />Apple does however remain firmly ahead of Google in terms of earnings. The former trades at a valuation approximately one third higher than Google's, with a P/E (price-earnings) ratio just 37 percent as big. <a href="http://macnn.com/rd/285681==http://thenextweb.com/insider/2013/05/15/as-apple-slips-below-400-billion-in-value-google-jumps-past-the-300-billion-mark/" rel='nofollow'>Essentially</a>, each dollar of Google profit is valued more highly, as the market expects the company to grow faster.<br />
During the past year, Apple's fortunes have both peaked and undergone a precipitous decline. At one point, in September 2012, shares were trading at $705 apiece; that price has since plummeted to roughly $428. iPhone 5 sales and more conservative guidance from Apple are believed to be among contributing factors.