Microsoft to be the first trillion dollar tech company pushing Apple and Alphabet behind: Equities

Apple, in February 2015 made history to reach as high as $775 billion market capitalization when the experts thought that it would be the first ever company in the world to reach $1 Trillion market capitalization. Later, Apple couldn't keep the capital for a long time as no other popular products from the company reached the market. The market capitalization has now fallen to $617 billion but still in the top spot.


But experts forecast that Microsoft with the current market capitalization of $492 billion will surpass Apple and Alphabet to reach first to the $1 trillion club. This can be seen that Apple being a hardware company has narrow scope to reach more customers compared to Microsoft being a Software company has a wider scope of reaching 1 billion people and has better cash flow and higher margins.

Linked In acquisition by Microsoft by paying $26.2 billion further increased the valuation of Microsoft as social network companies are traditionally valued higher despite lower margins. Microsoft paid only $60 per user compared to Facebook's $218 per user. Also, the Linked In users is more valued than Facebook. With this Microsoft is emerging as Social Investing Community (SIC) industry which allows crowdfunding from the social media.

Market Capitalization
$617 billion
$548 billion
$492 billion
$359 billion
$333 billion

Microsoft only competition appears to be Apple or Alphabet. After a period of hibernation in the leadership of Steve Balmer, Microsoft has gained a huge momentum in the leadership of Satya Nadella.

Source: Equities

No comments:

Powered by Blogger.