Steve Sorensen On Alphabet’s Net Worth

18 May

Steve Sorensen On Alphabet’s Net Worth

When it comes to R&D spending, few are as bold as Alphabet, formerly known as Google. Steve Sorensen, a net worth blogger, remains impressed with Alphabet’s outlandish technologies – diving head first into self-driving cars, home automation companies, virtual reality, as well as laptops called Chromebooks. Across all metrics, things are looking up for Alphabet. The parent company of Google realized a modest 4.9% gain in revenues, reaching $74,989 million, and 15.6% change in profit, amounting to $16,348 million. Alphabet’s total assets are now $147,461 million.

Image Source: writm.com

Compared to its biggest rival Apple, Alphabet seems bent on disrupting practically every industry it can think of. This is may be because Apple tends to stick to its strengths, one of which is design, whereas Alphabet is using technologies to “develop services that significantly improve the lives of as many people as possible”. This statement can be traced to Google’s IPO letter in 2004. Case in point, Alphabet is now looking into building an entire high-tech city in Toronto, which is a big leap from investing in self-driving cars.

 

In other industries, Alphabet is strongly committed to improving education systems, investing in e-learning and online classrooms. In the field of healthcare, Alphabet has also ventured into building an R&D facility for aging and age-related diseases through Calico. Alphabet also has interests in space travel, having invested a billion dollars in Elon Musk’s SpaceX. Not to mention the dozens of other companies it incubates in GV, formerly known as Google Ventures. GV has portfolio companies in the consumer, data & artificial intelligence, enterprise, and robotics sectors.

Image Source: businessinsider.com

Can Alphabet sustain this aggressive spending on R&D? Among all the technology companies, Apple has the biggest war chest, with over $200 billion in cash. No one knows what Apple is planning to do with that money – which could either mean that one of the most popular brands in the world is biding its time to pull the prefect surprise or is simply sitting on its hands and squandering opportunities. Meanwhile, Alphabet is still on an upward trend but it only has free cash flow of up to $7 billion. Steve Sorensen, a net worth blogger and ardent fan of Alphabet, believes Alphabet’s financial outlook is still good.

In the end, if there’s one thing entrepreneurs can learn from Alphabet, it’s that R&D expenditures will pay off eventually; they just need time to come into fruition. Like their tagline to do the right thing – anything worth doing, is worth doing right.

18 May

Steve Sorensen On Facebook’s Net Worth

Critics of Mark Zuckerberg must be throwing everything they got at his social networking firm in hopes something will eventually stick. However, these critics never really stood a chance, a view shared by net worth blogger Steve Sorensen. Net worth of Facebook? It’s now at $33 billion, more than half of Apple’s $56 billion. Facebook also notably galloped its way to the No. 157 spot in the Fortune 500 list, surpassing 325 other companies since it entered the list in 2013. Last year, it was only at the No. 242 spot, which gives one reason to believe it could finally be in the Top 100 next year.

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Based on the methodology of Fortune Magazine, Facebook posted $17,928 million in revenues, a staggering 43% growth from the previous year. Facebook’s profits also climbed 25% to $3,688 million, assets of $49,407 million, and lists over 12,600 employees. So far, the Internet services firm has had huge wins with its messaging app WhatsApp, reality headset Oculus Rift, and photo sharing platform Instagram. WhatsApp reportedly has over a billion monthly users, with the average user sending over a thousand messages every month.

 

Meanwhile, Oculus Rift continues to expand its list of gaming content, with titles like Project CARS, Elite: Dangerous, Euro Truck Simulator 2, and Dirt Rally. More than twenty games are also reportedly in the pipeline, which could boost sales. On the other hand, Instagram remains the photo sharing app of choice of celebrities and the general public. Instagram reportedly has over 500 million active users and has shared more than 40 billion photos shared to date.

Image Source: nyt.com

For its part, Facebook is fast closing in on another milestone – reaching 2 billion monthly active users; that’s a hundred percent increase since it recorded a billion users’ activity three short years ago. While investors may still have nightmares over Facebook’s disappointing IPO, critics only have themselves to blame for missing another unicorn stock. Now Facebook is trading around the $150/share range.

 

Is Facebook overpriced and overvalued? Investors can get in touch with Steve Sorensen. As a net worth blogger, he is well-versed with the nuances of reading a net worth statement. For the record, Steve Sorensen, at one point in his life, owned several hundred shares of Facebook but all investors need to know is that Mark Zuckerberg will remain a thought leader and innovation powerhouse in the years to come.

18 May

Steve Sorensen On Berkshire Hathaway’s Net Worth

Everybody wants to retire comfortably; just ask Steve Sorensen. Net worth is probably the simplest metric one can look at to gauge whether he/she is on the right track for his/her retirement goals, and when it comes to retiring comfortably, many investors have taken cues from the world’s greatest investor – Warren Buffet.

Warren Buffet is not only the second wealthiest person in the world (he has a net worth over $75 billion), but he is also the Chief Executive Officer of diversified holding company Berkshire Hathaway, which is currently ranked at No. 4 in the Fortune 500 list. Berkshire Hathaway boasts over $15 billion in assets. While the insurance and investing conglomerate retained its position from last year, it still managed to post healthy numbers. For instance, it raked in $210,821 million in revenues, up by 8%, and $24,083 million in profits, an impressive 21% profit, which brings conglomerates assets to a total of $552,257 million. Its cash holdings and equivalents first breached the $50 billion mark in 2014.

Image Source: SeekingAlpha.com

Some of the biggest companies in the world are wholly owned by Berkshire Hathaway, names like GEICO, BNSF Railway, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, Pampered Chef, NetJets, and Kraft Heinz Company. Berkshire Hathaway also has minority but still significant holdings in American Express, The Coca-Cola Company, Wells Fargo, IBM, Restaurant Brands International, Apple, as well as Mars Incorporated. With a notable investment portfolio, one can only wonder what would happen to the multinational conglomerate once Warren Buffet steps down – the legendary investor is in his late 80s, after all.

What could be next for Berkshire Hathaway? For starters, it’s reported that Warren Buffet is still keen on betting big in the utility business, specifically Berkshire Hathaway Energy (BHE). BHE has its roots in renewable energy, investing more than $6 billion across five solar projects, two of which are the country’s biggest projects yet. Berkshire Hathaway has a 90% controlling stake on BHE. Warren Buffet and Berkshire Hathaway could also be looking at acquiring more technology companies, which could boost the value of its portfolio even more, given the growth trajectory of names like Apple, Alphabet, and Facebook.

Image Source: Huffington Post

Can Berkshire Hathaway strike it big again? Analyses on the growth prospects of Berkshire Hathaway are welcomed by Steve Sorensen. Net worth, revenues, and growth are just a few topics he enjoys discussing on his blog.

18 May

Steve Sorensen On Apple’s Net Worth

How does one build a company as great as Apple? Ask Steve Sorensen. The net worth of some of the biggest companies in the country is what he explores on his blog. Last week, the world’s most recognizable tech company just briefly beached the $800 billion market capitalization threshold, inducing excitement among investors everywhere. Apple shares now appear to be building a base in the $150 price range, with current assets worth $239 billion.

As the first company to reach the $800 billion milestone, Apple looks on track to be the first company to hit $1 trillion in market capitalization, which means its share prices must climb another 30% to hit $200 a share. Fortune Magazine’s annual Fortune 500 list ranked Apple in 3rd place, climbing 2 places from the previous year. Apple posted $233,715 million in revenues, a whopping 28% increase on the back of robust iPhone sales around the world. Bagging some $53,394 million in profits, another incredible 35% profit for Tim Cook and the gang, Apple continues to be the stock that every investor hopes to hold in his portfolio.

Just look at the annualized total returns Apple has delivered to believers: over a five-year period, investors grew their investments by 19.6% while investors were rewarded with a 27.1% gain over a ten-year period. Will the trend continue or has Apple hit a wall as the market continues to show signs of maturity in the smartphone segment? This blogger believes that Steve Jobs’ baby still has room to grow and there’s merit in believing growth prospects aren’t overblown just yet.

First, Apple reportedly maintains a 40% margin on hardware sales. In other words, they’d have to do an incredibly stupid move — much like what their South Korean rival did — to chip away profits, which is highly unlikely. Next, Apple also enjoys excess cash flow, which means it’s far from seeing any kind of financial trouble. In fact, this only leaves room for analysts and investors to speculate on what Apple could use those hundreds of billions in cash for?

All in all, it’s hard to imagine what could have gone on investors’ minds about Steve Jobs’ company almost a decade ago. Ten years back in time, Apple landed at No. 121 on the Fortune 500 list, several hundred and ten notches higher after it plunged to No. 325 five years prior.

Where could Apple be a decade from now? Forecasts are welcomed by Steve Sorensen. Net worth, revenues, and growth are just a few topics he enjoys discussing.

22 Sep

Steve Sorensen Net worth Fortune 500 Updates

Want to stay updated on the latest news about the top Fortune 500 companies? You’ve come to the right place! I’m Steve Sorensen, a net worth blogger who covers large companies in the Fortune 500 rankings. My passion? To uncover these large companies’ business secrets and to learn about their journey climbing the Fortune 500 ranks.

The Apple Valuation

We love Apple. Even Apple haters have a soft spot in there somewhere. But just how much is Apple worth now? Previously, the tech giant has been hovering just a notch below the $ 700 billion mark, but last year’s earnings have finally pushed it beyond the 700 billion mark. However, there is one industry expert who thinks that Apple is actually worth at least a trillion dollars now.

You read that right, a trillion dollars! Let’s take a look at some of his arguments:

Image Soure: playmatetech.com

#1. Apple has a multiple of 15x compared to the S&P 500’s 17x. This simply means Apple is not overbought, and definitely not overvalued. The multiple is one way to measure a company’s value relative to its earnings. Generally, companies can have a multiple of 20x before investors put on the brakes and begin to reassess their projections. At a 20x multiple, though, this means Apple shares will be worth a staggering $215 at the minimum, giving it a total market capitalization of $1.3 trillion.

That’s a lot of zeroes, but you do the math—Apple reportedly sold 75 million iPhones last quarter. That’s one feat CEO Tim Cook can be proud of.

#2. Apple is peerless, with virtually no industry competition. If we look at other big tech names, say, Google, Microsoft, or Facebook, these companies are innovation leaders in their own right, but they have no competing core businesses with each other. In fact, if you look closely, their products and services are actually interconnected with one another, which means that one company’s sales can be related to the other company’s profit.

For Apple, what still sets them apart is their brand. They don’t play by any other company’s rules. For a lot of today’s standards, they made the rules.

Image Source: fortunedotcom

In Other News

In other news, another Fortune 500 Company reached a new milestone in terms of market capitalization. Earlier this month, e-commerce giant Amazon climbed past Exxon Mobil to become the 4th largest company in the country, breaching the $362 billion mark. During the day’s session, Exxon Mobil lost 2% giving Amazon a leg up. Exxon Mobil had a market cap of $361.6 billion.

Amazon is reportedly busy in preparations to release a new music service, one that will rival Spotify, Pandora, and Jay-Z’s Tidal. Of the three streaming services, Pandora is the closest competition in terms of subscription fees. Rumor has it that Amazon’s subscription fee will only cost about half of the average, which is around $10. Pandora’s streaming free is at $5, and Amazon is looking to grab some of its market share with a streaming service called Echo.

For more news and updates about the top Fortune 500 Companies, stay tuned here. Steve Sorensen, the net worth blogger, will be bringing you more interesting business news on this page.