Here’s something I never would have imagined as possible just a few years ago: Apple now has a larger market capitalization than Dell — 72.13B versus 71.97B. Neither company is cheap — Apple’s P/E is 55, while Dell’s is 24.
There is no word for that other than astonishing. I’ve been a Mac user for 20 years, never was a fan of Windows (although XP is pretty good), but I never in my wildest dreams ever envisioned this happening.
Recall what happened after Jobs returned to Apple back in 1997. When asked what could be turn to turnaround Apple, Dell’s founder and chairman, Michael S. Dell advised "shutting down Apple and give the money
back to the shareholders."
The NYT reports that in an email to employees:
On Friday, apparently savoring the moment, Mr. Jobs sent a brief e-mail
message to Apple employees, which read: "Team, it turned out that
Michael Dell wasn’t perfect at predicting the future. Based on today’s
stock market close, Apple is worth more than Dell. Stocks go up and
down, and things may be different tomorrow, but I thought it was worth
a moment of reflection today. Steve."
Dell executives did not return calls over the weekend asking for comment on Apple’s rising fortunes.
Does this imply some additional froth in the market? That’s hard to quantify.
I cannot recall anyone making this forecast 7 years ago. Truly astonishing . . .
Michael Dell Should Eat His Words, Apple Chief Suggests
Published: January 16, 2006