Apple Crossed $700B Will Microsoft Soon Follow Apple Inc (NASDAQ AAPL) Google Inc (NASDAQ GOOG)
Post on: 16 Март, 2015 No Comment
Apple Inc. (NASDAQ: AAPL ) briefly rallied to a $700 billion market cap this week, highlighting the Mac-makers success as the largest enterprise in the world.
Now that the dust has settled, investors only have one question: Which company will hit $700 billion next? I would put my money on Microsoft to cross over that barrier, Thomas H. Yorke, managing director of Oceanic Capital Management, told Benzinga.
Theyre in the middle of a metamorphosis, if you will. Theyre grabbing the next generation and getting into some things they havent been active in prior.
Yorke is curious to see how Microsoft Corporations (NASDAQ: MSFT ) long-term strategy pans out for Surface. Surface has [received] a big push, said Yorke, who serves as a portfolio manager on Covestor. I thought it was interesting to see the Surface push on a lot of the NFL programs. Theyre bringing Surfaces out and people are getting to see them on what I think is clearly Americas sport. Will that help them? My guess is thats a fairly effective marketing tool for Surface.
Dont Count On Google
Brett Golden, president and co-founder of The Chart Lab. doesnt think that Google Inc (NASDAQ: GOOG ) — once expected to be the first trillion-dollar company — will match Apples market cap.
I dont think its going to be Google, Golden told Benzinga. I think Google has a very good business. Its somewhat of a duopoly. You see theyre trying to innovate in a lot of other ways. I think theyre hitting a plateau in their business.
Golden thinks that if any firm can get to $700 billion, it might be Exxon Mobil Corporation (NYSE: XOM ). What company is gonna [do it]? Golden questioned.
Why would Googles business triple [to reach $1 trillion]? Whats the catalyst? It certainly is not going to be advertising. Youre dealing with a very depressed valuation in terms of Apple because no one believed — everybody thought their products were becoming commoditized and their margins were moving lower. I dont see any catalyst thats going to make Googles stock price triple.
Microsoft may also have a chance at hitting $700 billion. I tend to think that Microsoft is a much more diverse company than Google, Golden added. I think if they can really expand their enterprise business they might have a shot. But the stock has had such stellar performance as it is, I dont know.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.