Alphabet Inc., the newly formed parent company for Google, Nest, and a host of other companies, is now more valuable than Apple Inc.
The median target price for Alphabet shares among 31 analysts rose to $924 on Monday, following the company’s strong financial earning’s report.
If those prices hold true, Apple could be worth $628 billion in the next 12 months.
Apple, tracked by 49 analysts, would be valued at $748.5 billion, at the current median price target of $135. Analysts believe Apple could hit $1.10 trillion in market valuation over the next year, making it the first publicly listed company ever to be worth more than $1 trillion.
Billionaire investor Carl Icahn, an investor in Apple, said in May that the tech giant was “dramatically undervalued” and he placed a $240 per share mark on the company’s shares. At that price, the company would be valued at about $1.30 trillion.
Alphabet’s shares rose as much as 4.4% to $804.50 on Tuesday, valuing the company at $546.50 billion.
Apple shares fell 1.2% to $95.28 for a market valuation of $528 billion.
Alphabet’s stock has surged 43% in the past year. The company also claimed rights to the largest single day market valuation gain in history when Ruth Porat was named as the company’s new CFO. Her promise to deliver more transparency about the company’s future finances immediately impressed Wall Street.
Apple shares are down 18% in the last 12 months and CEO Tim Cook announced last week that iPhone sales are expected to fall for the first time ever in the current quarter.
Apple shares trade at 10.59 times forward 12-month earnings versus Alphabet’s 22.47.