THE RACE IS ON! Big "Softy" might beat the "Big Fruity" (my new trader term for Apple) to becoming the first $1 TRILLION company. Oh yeah, Microsoft is on a huge comeback in its business model and now is a true challenger to be the first company for the $1 trillion bragging rights. So will "Softy's" Azure cloud platform surpass "Big Fruity's" iPhone 12 (or 17, or 22, or....whatever) in market cap? Here's a reasonable thought; have "Softy" announce they are going into BITCOIN. Instant $1 TRILLION market cap.
(Bill Taylor/CEO)
- "Several of the largest companies are quickly approaching a $1 trillion market cap, a benchmark that's never been reached.
- Microsoft wouldn't have even been con sidered a contender until recently. Now, it stands a chance.
Fast-forward to today, and you wouldn't be so crazy to think that Microsoft could power ahead of the competition to a 12-figure valuation. CEO Satya Nadella, who took over in 2014, made cloud computing a priority. He moved quickly to grow the Azure cloud platform and shift to subscription software. The result has been an explosion in the stock price. Microsoft is now valued at around $650 billion.
Microsoft stock would need to gain another 50% or so to reach the trillion-dollar mark. That's a big move, but it's not unthinkable.
Not cheap but not all that expensive, either
Microsoft generated $32.3 billion of free cash flow and $22.1 billion of net income over the past 12 months. At the current stock price, the price-to-free cash flow ratio is about 20, and the price-to-earnings ratio is about 29. Given that the S&P 500 currently trades for roughly 25 times trailing-12-month earnings, these numbers don't seem out of line..."
Full Story at BusinessInsider