Google is going to add Apple 2025 financials in the next 2 years?
u/bartturner ·
Reddit — r/stocks
· May 02, 2026 at 11:35
· ⬆ 29 pts
· 💬 14 comments
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On the earnings call Google shared they were going to recognize over 50% of their $462 billion dollar backlog in the next 24 months.
That would make Google cloud operation have $310 billion of revenue in 2 years.
The current margins for their cloud business is 33%. But increasing. The backlog for Google includes both cloud and chips so think a 40% margin is reasonable.
That would give Google $124 billion of new earnings. Apple in 2025 made $117 billion or actually LESS than the size of Google's cloud business in 2 years.
If we look at market cap it means Google should be over a $7 trillion dollar company and that is only using a multiple of 30. It could be higher. Heck it is 35 right now. Or could be lower obviously. If we use a 25 multiple you still a $6.5 trillion dollar company.
Why is nobody talking about this?
What do I have wrong here?