Prediction: 3 Stocks That Will Be Worth More Than Apple 3 Years From Now

Apple (NASDAQ: AAPL) is the world's second-largest company, with a marketplace headdress of $3.8 trillion (as of Feb.12). However, I deliberation it'll beryllium surpassed by others implicit the adjacent fewer years.

The world is that Apple's artificial quality (AI) strategy has fallen connected its face, and it is present relying connected Google to prevention the day. Additionally, it has failed to motorboat immoderate innovative caller products implicit the past fewer years, which indicates it is resting connected erstwhile success, not aboriginal innovation.

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This tin unfastened the doorway for a fewer companies to walk Apple successful presumption of valuation successful a fewer years, and I deliberation Apple's days arsenic 1 of the world's largest companies are numbered if it doesn't commencement innovating again.

One of the reasons wherefore Apple has specified a precocious marketplace headdress is its valuation. Compared to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN), Apple has a ample premium, arsenic measured by price-to-earnings ratio.

At a price-to-earnings ratio of 32, Apple is acold much costly than the different 3 stocks that I deliberation volition beryllium worthy much than it 3 years from now. I'm not against a banal having a premium valuation, but it indispensable beryllium earned. I don't deliberation Apple's is.

Just instrumentality a look astatine the maturation rates of these companies implicit the past fewer years.

Although Apple had a beardown vacation quarter, I request to spot much results earlier I'm consenting to springiness it a premium. The world is Apple has delivered single-digit gross maturation oregon worse for the past fewer years. The different 3 person been increasing overmuch faster, and I'd expect that inclination to revert successful the ensuing quarters for Apple.

If it tin present mid-double-digit maturation arsenic it did successful its caller quarter, I deliberation a flimsy premium (although not the monolithic 1 it has now) is warranted. But until then, I similar the chances of the different 3 stocks rising astatine a overmuch faster pace.

If you look astatine earthy nett income figures, you tin spot which components should beryllium worthy much if they each had the aforesaid net aggregate attached to them.

Using that logic, Alphabet and Microsoft should beryllium worthy much than Apple, though Amazon inactive has a ways to go. I deliberation Amazon tin adjacent the spread implicit the adjacent fewer years, and the superior mode it volition bash that is done its unreality computing platform. Alphabet and Microsoft besides person a thriving unreality computing business, and it provides a monolithic upside that Apple doesn't have.