Susuto

and from *my* post:

“is having trouble outside of its search business”

Never said that Google was having trouble cutting a profit, but when you put together a discounted cash flow analysis, you’re taking into account future profits. As you said, Apple has a small market share; it’s still got a lot of room to grow in the hardware business where it cuts a large margin. Google, comparatively, doesn’t have as much room to grow in search (where it’s highly profitable), and outside of search, Google hasn’t proved itself able to be profitable. The youtube purchase, for example, gave Google the online video market at the price of $1.7B, with something like 150 million visitors a year - yet youtube only generated revenues of about $15M in a year. You have nifty tools such as google docs, google reader, etc. but how are you going to convert all these neat things from google labs into cash?

As an investor myself, I don’t own shares of either company. (I believe they’re both over-valued) But to just go out and say that Google is “obviously” worth more is just a bit naive.