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The main things I see lately are: Apple is creating VR headsets and new chip technology, Microsoft is buying up AI companies and injecting ads/spyware into their operating systems. Also Microsoft is getting big into cloud. Interesting to see what Wall Street rewards.
Bill Gates, at time of IPO owned 49% of Microsoft. If he hadn’t sold his stock, he’d be worth ~$1.5 Trillion To put that into context, he'd be worth 6x Elon Musk (who's the current riches person-in-the-world) https://finance.yahoo.com/news/bill-gates-could-trillionaire... .
But there would be a shit ton more polio in the world, so I'll accept that tradeoff.
Earlier quoted context omitted.
> On the other hand Apple's success for the last 15 years has relied on a single device. That "single device company" makes just half of its revenue from iPhones. Recurring services revenue accounted for almost 25%.
How much of that other half would still be around if the iPhone was no longer a thing? Apple Care? App store purchases? IAP/microtransactions? Apple Pay? iCloud storage? Chargers? Airpods? They can structure their financial reports however they like, but it doesn't change the fact that their entire ecosystem is directly or indirectly tied to that one device.
One way to think about this is that Apple isn't diversified enough. Another way to think about it is that Microsoft's long tail is a mess.
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The main things I see lately are: Apple is creating VR headsets and new chip technology, Microsoft is buying up AI companies and injecting ads/spyware into their operating systems. Also Microsoft is getting big into cloud. Interesting to see what Wall Street rewards.
Microsoft is one of the most diversified companies in existence. Pretty much every business, every government and most consumers around the world are directly or indirectly paying them money for something , whether software, devices, consulting, cloud, data. On the other hand Apple's success for the last 15 years has relied on a single device. Now that the device is running into some issues (dropping sales in China,…
In ~theory~ such an announcement would be priced into the markets since market capitalization is also dependent on future expected returns.
Maybe investors just don't think everyone will be wearing $3000 digital fisheye goggles in a few years.
The main things I see lately are: Apple is creating VR headsets and new chip technology, Microsoft is buying up AI companies and injecting ads/spyware into their operating systems. Also Microsoft is getting big into cloud. Interesting to see what Wall Street rewards.
Earlier quoted context omitted.
Microsoft is much more diversified than that. They have entire consulting services and a world class research arm and many other things that Apple has no analog of.
> world class research arm Honest question: does Wall Street care? In my experience, this is the kind of thing that’s (rightly or wrongly) considered a “cost center”, not a “profit center”.
Some people on wallstreet do. In Mckinsey's book Valuation, they make it pretty clear to the reader that companies who spend a lot on r&d tend to have outsized returns compared to their counterparts, who don't spend that much.
The main things I see lately are: Apple is creating VR headsets and new chip technology, Microsoft is buying up AI companies and injecting ads/spyware into their operating systems. Also Microsoft is getting big into cloud. Interesting to see what Wall Street rewards.
Interesting to see you so confident that you’re well informed that you think you’re well positioned to make a moral judgement on such things.
He’s offered a short opinion on the behaviours of two companies and made something of an ethical judgement.
Why disparage someone for daring to have an opinion?
I'm no investor or financial analyst, but it appears to me that Microsoft have a diverse range of revenue (that don't necessarily depend on each other) with pretty good lock-in with their products (not easy switching away from M365 once you've gone all-in with it). Apple on the other hand still have most of their revenue coming from iPhones with the next biggest coming from services which stems mostly from the iPhone…
This is probably the bingo statement. Everyone has seen the layoff's recently. Markets are expected to take a turn for the worse. In such a situation, a highly diversified company would be perceived as more valuable than a high-end consumer brand.