Earlier there were reports speculating around the world that Apple could be crowned the First Trillion Dollar Tech Company by reaching $1 trillion market capitalization. However the company’s market cap has come down from $775 billion in February 2015 to $617 billion due to the fact that the company could not provide much growth or impetus in the Smartphone market.
The famous author from Equities.com Markowski says that due to the fall out of Apple market Cap Microsoft could well be in line to become the first Trillion Dollar Tech Company taking the crown from Apple and Google.
Market Capitalization | |
Apple | $617 billion |
Alphabet | $548 billion |
Microsoft | $492 billion |
Amazon | $359 billion |
$333 billion |
Microsoft being a Digital Company has more scalable business model, better cash flow and higher margins. Markowski also notes that Microsoft’s acquisition of Linkedin has boosted its PE multiple significantly. Microsoft having only paid Linkedin around $60 per user compared to Facebook’s $218 per user suggesting upside is possible for Microsoft.
After a decade Microsoft’s share price has gained more than 50% over the last three years. and Markowski postulates another doubling.