Apple is now worth more than Microsoft

[Ail]

Grimes said:

Ail said:

Grimes said:

darklich13 said:
It all lasted one day. Microsoft is back on top now.

http://blogs.barrons.com/techtraderdaily/2010/05/27/right-back-at-ya-microsoft-back-ahead-of-apple-in-market-cap/

Short term I'm sure they'll trade off. But if you look at the long term chart for MS, it's almost completely flat over the last decade. That's the problem, MS is stagnant, it may not go down but I don't see anything driving it up either. For an investor, it's like putting your money in a savings account, which is good for some and not good to others.

The only issue with purchasing Apple stocks is that you are betting that Steve Jobs will stay healthy for a while...

There is definitely a risk. But then again, Apple seemed to operate decently when he was absent.

All I know is MS has been dead money for a while.

Small correction :

MS has been dead growth, they have been very reliable in maintaining a healthy level of profit however.

They are like a treasury bond, no matter what happens you know they will pay the coupon at the expected date, even if the economy isn't doing that well. Do not expect your coupon to increase much over time however....

But they will however remain very profitable for the medium term as most of their business is recuring...

 

The main issue with Apple is that the majority of the business isn't a recuring business and noone knows if they will be able to keep maintaining such high profit margins on hardware for the medium term as it is something noone has been successfull to keep going for a long time aside from the luxury and software business...