Is this an announcement you thought you’d never hear? Well, there is one expert out there who believes it this could become reality in the coming years. Going after 2 of the largest tech giants, Apple and Alphabet, there is a chance of Microsoft being crowned as the first digital technology company to accomplish a market value of trillion dollars, states Michael Markowski of Equities.com.
Markowski is exceptionally bullish over his outlook for the future of the digital economy and has quoted multiple factors for the said reasoning. In an official blog post, he mentions that Microsoft currently holds the 3rd place in the market value chart, following tracking down to the big daddies of tech. But this scenario will soon be turned around with the indications holding a position lower on this list, which is also being validated by the recent Consumer Reports. Here are the market caps of the biggest tech giant as of Monday morning:
Apple – $622.6 Bn
Alphabet – $549.7 Bn
Microsoft – $489.3 Bn
Amazon – $358.7 Bn
Facebook – $337.6 Bn
He has further expanded on his views asserting that the first $1 trillion company won’t be a devoted technology firm but instead an online or digital company. And this drives us to the very first reasoning which will enable Microsoft to achieve the trillion dollar goal before any of the other tech firms — LinkedIn acquisition. This deal will enable the company to capture the interest of the millennials in the business social media sphere, who’re at present pretty active and familiar with the last half of it. The user base for the platform, he predicts, will swell to nearly 700 million by 2020. He also adds,
The $26.2 billion paid averaged out to $60 for each of LinkedIn’s users. That compares to the average Facebook user being valued for $218 based on its market cap. There is also a logical argument as to why a LinkedIn user will ultimately be more appreciated than a Facebook user.
Microsoft, with its ownership of LinkedIn, is extremely well positioned to be a major player. It has a monopoly on the business social media niche or community.
Due to the addition of a digital product in the form of LinkedIn to its cache, Microsoft’s free cash flow will probably be the highest among all other tech contestants in the stated department. This acquisition will also result in a jump in the company’s PE multiple, which will further enable it to outstrip others even after being the most devalued.
This now drives us towards the second factor which places Microsoft at the helm of the burgeoning crowd funding market. It could be the next possible opportunity of growth for the company, stated Markowski. The company will build and integrate certain products into LinkedIn that will enable it to considerably increase its revenue and profits per member. Thus, the whole growth story for Microsoft is basically positioned around its latest $26.2 billion achievement, which could turn out to be its greatest asset.
The achievement positions Microsoft to be a leader in the emerging Social Investing Community (SIC) industry, which is the key to online equity crowd funding becoming abundant. The SIC industry is in its initial stages. However, my prediction is that by 2025, it will rank in size and scope right along with the digital search and social media industries.
Previously, as you might have guessed, Apple was being seen as the most favorable contender for achieving the pole position in crossing the trillion dollar valuation point. It has already once achieved a $700 million market value in the US back in early 2015 but the same has observed a downfall since then. Due to the delivery of not-the-best products, Apple has been facing mass criticism and a sudden decline in sales figures.
Conversely, Microsoft has been directing focus on the expansion of cloud and enterprise software services under the leadership of CEO Satya Nadella. The new Surface lineup released by the Redmond giant has also received mass obligation from tech enthusiasts and analysts alike. Some have even gone as far as to state that Microsoft is currently the most creative and innovative brand in the market as related to Cupertino.