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Forums - Microsoft Discussion - MIcrosoft is now a 2 trillion dollar company happened june 22(I'm late)

JRPGfan said:
kirby007 said:

Untill its abouts sony marketvalue and its gospel yes yes i have heard it all before

Sony are probably overvalued too.

MS annual earnings = $143 billion rev, $53 billion in operating income)  = stock value $2T  (2000 B)

Sony annual earnings = $82.5 billion rev,  $10,7 billion in operating income)  = stock value $121,2 B USD

So MS stock is worth like 16 times more than Sony, but they only make about 2 times the revenue, and about 5 times the operating income.
(this is compairing 2020 vs 2020 for both, notice that this was while Sony was launching the PS5, and had to deal with pandemic cutting profits in movies ect)

I dont know, I just think its priced high.
And it could be a bubble that bursts at some point.

Someone check numbers, if I got them right or wrong somewhere.
I just did a quick look on a page, with stocks and might have miss read something.
But from what I saw/googled, this was what I came to. (x2 rev, and x5 operating income)

Don't know todays value but Sony's market cap at 1st June was 130.1 billion usd

Now we shouldn't just look at the headline figures, Sony is considered a conglomerate and that's historically been seen as a black mark in investment circles terms so it negatively impacts companies share price and market cap and iirc was referred to as the conglomerate tax or something similar and was one of the main reasons why Sony's share price even against a backdrop of sustained performance continued to languish, that it did improve may mean that looking at Sony as being same old unwieldy conglomerate of yesteryear may hopefully have changed.

In MS case it's the reverse where you have it being a tech stock at a time where they are considered the future and are the darlings of the market and so are reaping the type of benefits that make those riches that were accrued by the old moustache twirling corporations that once held sway over the big end of town look paltry.

MS in the past had its market cap rise to 800 billion only to fall by 500 billion to again rise to the present value showing that the when the underlying fundamentals are right and a company isn't reliant on it's share price to help prop it up then that high share price is just a bonus. so whether One company is under or over valued is ultimately for the market to decide and those decisions are both constant and ongoing but if you have a company with solid economic foundations it should be fine.

Last edited by mjk45 - on 02 July 2021

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dx11332sega said:

The software maker first hit that level just after 3 p.m. ET on Tuesday, June 22, but dipped below that mark again before ending Thursday’s trading session at $266.69 per share. The milestone follows the company’s unveiling of Windows 11, its first new version of the flagship operating system in more than five years, on Thursday morning.

(Microsoft’s value has doubled in two years’ time), bolstered by demand for products such as the Teams chat app that kept organizations functioning during the coronavirus pandemic.

The appreciation of the company’s stock price reflects a rejuvenated company, one that has looked beyond its dominant Windows operating system and found growth in cloud computing and acquisitions.

Microsoft stock has grown more than 600% since Satya Nadella replaced Steve Ballmer as the company’s CEO in 2014. (During Ballmer’s 14-year tenure as CEO, the company’s stock fell 32%.) One of Nadella’s first moves was to reveal that Office applications like Word and Excel were coming to Apple’s iOS and Google’s Android, rather than restricting those apps to smartphones that ran Windows. A year later, when Windows 10 came out, it was a free update, unlike Windows 7 and Windows 8.

Nadella had run the division that includes Microsoft’s Azure public cloud immediately before taking the CEO job, and it shows. In his years as CEO he has made public appearances to talk about uses of Azure at prominent customers such as the National Basketball Association, Volkswagen and Walgreens. Azure is on track to become Microsoft’s largest business.

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