At $400 billion, Apple is worth more than Greece

[rocketpig]

Kasz216 said:

disolitude said:
Man, looking at this Microsoft is seriously undervalued right now compared to some of its peers on a P/E or FCF basis...

It's because people are all about growth.

People see Microsoft and don't really see a strong path to future growth.  Though I do agree microsoft is undervalued, if anything due to their diversity.

Apple is a lot like Nintendo.  Huge based off "innovations" and putting things in a way customers actually want it... but with little stableness behind it.   Meaning that it can be pretty volitile and go bad fast if they start making the wrong moves. 

It's hard to compare Apple to Nintendo anymore. Seven years ago? Maybe. But now they have profitable divisions in their Mac line, iPhone, iPad, iPod, iTunes Store, and now they're going after school textbooks. Within the year, they're going to start pursuing the smart television market. That is beginning to turn into a pretty well-rounded set of offerings.

Microsoft is definitely more diverse but much of that diversity struggles to earn them any money and a few divisions are giant moneypits. Their "real" money comes from Windows and Office with the Xbox line starting to come around. They're in more danger over the next ten years than Apple. Microsoft's main money makers (outside of Xbox) aren't only saturated, they're in decline. And they will face real competition from iOS/Android over the next few years. In short, if people stop buying computers and start replacing them with tablets (which Microsoft has ZERO stake in at this point), Microsoft could be royally and utterly fucked.

Not that I think they will, but it is a real possibility. Best case scenario is that Microsoft's core businesses will remain stable in the next decade. There is almost zero space for growth.