Pablo Marull

Ideas sobre economia, mercados financieros y decisiones de inversión a largo plazo.

This table shows the accumulated Price return and EPS Growth of GOOGL, AAPL, META, MSFT and AMZN since Q3 2021.

 

META, MSFT, and GOOGL have shown the strongest relationship between EPS growth and price appreciation. In the cases of META and Microsoft, the relationship has been particularly close to one-to-one.

 

AMZN and AAPL, however, represent the opposite dynamic. Apple’s stock price has appreciated 138%, while its EPS has grown by only 47%. Conversely, Amazon has delivered an impressive 162% increase in EPS, yet that earnings growth has not been fully reflected in its stock price performance—at least not yet.

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