Analyst sees Microsoft becoming the first trillion dollar company

Analyst sees Microsoft becoming the first trillion dollar company
Back in February 2015, the market capitalization of Apple (share price multiplied by number of shares outstanding) surpassed $710 billion. At that point, Apple was the first company in history to be valued at over $700 billion. The tech titan eventually peaked at $775 billion before slipping back to the current value of $617 billion.

Even though it currently is in third place after Apple and Alphabet, Microsoft will be the first company to have a valuation in excess of one trillion dollars according to Equities.com analyst Michael Markowski. The current valuation of the top five publicly traded tech firms includes:

  • Apple $617 billion
  • Alphabet $548 billion
  • Microsoft $492 billion
  • Amazon $359 billion
  • Facebook $333 billion

Microsoft has a better chance of reaching the trillion dollar mark than Apple does, says Markowski, because a software company like Microsoft is more scalable and can reach more people than a hardware company like Apple. The analyst also says that the acquisition of LinkedIn helped raise Microsoft's valuation because social media earnings are valued higher. And Microsoft paid only $60 for each LinkedIn subscriber, who tends to be a professional with a higher paying job than the typical social media user. Facebook paid $218 on average for each of its social media users.


To get to $1 trillion in valuation, Microsoft will have to double its stock price. It should benefit from a hike in LinkedIn subscribers to 700 million by 2020 from the current 433 million. The only competition that Microsoft has in the race to $1 trillion in value is Alphabet, according to Markowitz. The analyst doesn't expect Apple to be involved in what he sees as a two company race.


source: Equities.com via MSPoweruser.com

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40 Comments

1. Crispin_Gatieza

Posts: 3166; Member since: Jan 23, 2014

Now they have no excuse for putting LinkedIn contact integration BACK in.

32. sgodsell

Posts: 7570; Member since: Mar 16, 2013

I remember what some analysts said about Microsoft's Windows Phone back in 2010. I wonder if these are the same analysts that said that Microsoft was going to have a larger smartphone market share than Apples iPhones by 2017. Look how well those analysts did. Windows in mobile is closer to a footnote, and now has less than 1% market share.

2. ara.armagedon unregistered

Lol, OK.

3. Tziggy14

Posts: 626; Member since: Sep 02, 2014

HAHAHAHAHAHA. Microsoft has yet to introduce a product that will change the world to add to their revenue stream. So far Azure is adding nicely but HoloLens isn't out yet and even that is not fully guanranteed to raise their market cap to even higher than Apple's. Alphabet is much closer to being a trillion dollar company since they have will eventually monetize their cloud platform, Andromeda OS, and their self-driving car software that is bound to commercialize next year.

14. sgodsell

Posts: 7570; Member since: Mar 16, 2013

You are forgetting that Alphabet also has a number of hardware initiatives like fibre, project loon, and the solaria planes that can stay up in the air for long periods of time, this will bring internet to the rest of the world. They also have a huge robotics division. They not only have Boston Dynamics, but now two other robotics companies. Alphabet also has Clario for bio medical engineering. Like they tracking contact lenses, and more.

21. krystian

Posts: 423; Member since: Mar 16, 2016

Software is the best way to get more revenue. It also requires funneling less money into it than you would into hardware. Next, a lot of these projects (some of which have been cancelled) are not going to gain them that much money but will strictly be for research use or other avenues. Look at IBM and some of the crazy stuff they have done, but they are not making that much money from it. You need business products and consumer products that everyone wants. Ones that solve many problems with simple solutions. Robotics has been done for ages and there are companies that barely make a blip on the revenue radar. Contact lenses are not likely going to do much for them. People hate wearing contact lenses. My friend got laser eye surgery just to avoid them. Even with cars they won't get far. The car industry has not hit such revenue either whether it be electric or gas. Think of all these rich powerful oil companies who are not even valued that high.

16. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Surface isnt a product that will sell 50 million units a year. Its a super good product that's very expensive, though oriented NOT for the general public.

26. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Expensive compare to what? A entry level Surface is the same cost as an iPad. The cost of the iPad never prevented it from selling. The reason it is falling now, is because the iPad hasn't changed since 2010 It's still just a 10" iPod Touch.

19. joevsyou

Posts: 1093; Member since: Feb 28, 2015

ok but thats not going to really push them anywhere, Sure it may gain them a few billion but it's not a new product to sell thats going break and grounds.

20. sgodsell

Posts: 7570; Member since: Mar 16, 2013

The main areas for Smartphones, and also the up and already here IoT's, Microsoft is next to no where right now. These areas are dominated by Android, iOS, and Linux. Sure Microsoft has a presence in these areas, but if they were not there. People wouldn't even notice if Microsoft pulled out.

22. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

You're forgetting their platform wasn't anything not too long ago in the Tablet market. If history is anything to go by, wouldn't put it past them to do the same in the Smartphone market...

8. Crispin_Gatieza

Posts: 3166; Member since: Jan 23, 2014

Son, take the blinders off for a minute. Microsoft makes its bread on Enterprise, not the general public.

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I hope for a more balance distribution of competition. I have live thru the Microsoft monopoly days and not looking forward to another such period. Like it or not. We are enjoying the golden era of tech innovation with tech innovation happening from every companies on a more regular basis than from the day of one company. When one is reign they will spend a majority of time and effort milking their cash cow and keeping competition out. Now, everyone is focus on bring the next big thing which I really appreciate.

30. krystian

Posts: 423; Member since: Mar 16, 2016

You're living the Google Monopoly now. The past is the past. Companies change, CEO's change, people change. Ms has become one of the most open and dare i say innovative companies in a while. And I never thought so in the past. I strictly used linux on my desktop for a good 16 years before windows 10. Their OS is inspirational enough to get Google to try and follow a similar path. They are taking more chances and seem to have squashed the separation within their company and are bringing it together to a more cohesive unit. Time will tell. But I'm not particularly fond of any one company. If something impresses me I don't care what brand it carries.

31. sgodsell

Posts: 7570; Member since: Mar 16, 2013

"Microsoft has become one of the most open innovative companies". Clearly you do not know the meaning of the word open. You used Linux for 16 years, yet you went to Windows 10, which is by far the most closed OS that Microsoft has to date. Microsoft likes to throw around the word open, and clearly you do as well. But they are no better than Apple when it comes to being open. As far as Google being a Monopoly. They may be a Monopoly in mobile, but Microsoft is still the Monopoly when it comes to PC and laptops. Also Google did it by giving their Android OS free to OEMs or for anyone to use and update. Something that is still impossible to do with Windows OS's.

34. krystian

Posts: 423; Member since: Mar 16, 2016

I didn't say open as in windows 10 is open sourced. I said Microsoft is an open company. As in hiring practices and employee projects. If you notice they release a lot of apps for Android/ios and not for windows mobile. This is because these are employees who decide to work on projects and MS supports them. And if you don't know the stats MS has contributed more to open source than Google. They are a different company under Satya. He embraces open source while Balmer thought it was a plague. It's all about leadership and MS did what was needed to become more progressive. Windows mobile is also free for OEMs to use. But obviously you can't just compete once loyalties have been established in the world of tech. But companies like Samsung argue that they should be able to have their own software store since they are the driving force behind the popularity of android. They also modify android heavily but are forced to have play store. So Google is no different than MS mobile. Google simply sits and collects money. MS at least works with OEMs and does most of the work with getting the OS working on their hardware and helps with implementing features. MS has also made lots of deals with android OEMs to waive patent fees in exchange for preloading software. Manufacturer can also allow users to remove the software. It's a much smarter way to make partnerships and companies can save money on patents. PC's aren't really that relevant anymore. More people have phones. You can do most stuff on a phone. And this is why MS's windows 10 project is so forward thinking. It removes the limitations of user input/output that a phone delivers. I have the 950xl and the continuum feature is definitely getting better and better as they release new builds. It has a future no doubt. It makes sense because phones have become more general purpose computers. Unless you're gaming or doing some sort of process intensive stuff you should be able to just use a keyboard/monitor on an existing phone processor to do general computing and be productive. Again the engineering feat of windows 10 is insane. It's not finished but they are definitely ahead of the competition who seem to think this is the way to go. You can look at Andromeda OS to see that Google is attempting the same thing.

36. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

You explanation is all over the place and pretty one sided. I view monopoly as having a proven active role in stiffen competition. Microsoft is a convicted Monopolist while Google while their track record is not spotless has never been convicted as one. Another consideration is the potential to abuse their monopolistic position, The direction Microsoft Windows 10 has taken is just as worrying. They have Google Ads ambitions but still charges their user an OS fee of US$100. Their annual revenue is near double of Google which mean that they are in a great shape to bring back those monopolistic days of the 90s and with money in politic Microsoft could do even greater anti-competitive damage than they did in the 90s. Please don't mistaken that i am pro-Google for the sake of Google. I am just a concern pro consumer.

37. krystian

Posts: 423; Member since: Mar 16, 2016

Yes they have been and that was the past. People make stuff up about windows 10. They aren't an ad company and ad revenue is not their focus like Google. Look at the revenue. I do however think they do need an ad network for app developers that is as powerful as Google. If anything it would be nice if Google created a solution for these devs. Google unfortunately purposefully ignores windows store and as such Microsoft needs to provide alternatives. But your OS usage data has nothing to do with that. Everything is configurable too. The idea is that If you want a personalized experience you will be consenting to certain data gathering. All the info is provided in the privacy settings and help areas. These are very concrete answers and MS is adamant they are protecting user privacy. Heck they fight for their user privacy in court. In the past unlikely that would have happened. As far as cutting competition in the past, they are doing the opposite these days. Even other competitors are liking the new microsoft. Look at office 365. They have integration to so many of their competitors. They promote their competitors cloud solutions. They are all about creating a huge ecosystem where any user can find anything they want and tailor it to their needs. This is beneficial to them as no one will leave a product behind because they can't use this or that. By allowing ties to every piece of their software from competitors they are creating the ultimate solutions. Windows 10 is really about being everywhere and having everything. All in one spot. Google is currently in court in the EU for monopolistic actions. So who knows how that will turn out. Anyways, I'm not even against Google or Apple or MS. I think all companies bring something to the table. Just my view of the future is with MS exactly because of where windows 10 is heading and what their plans are. Google is also doing some great things and Apple well that is for a certain audience that i don't fit but they know how to polish their products no doubt.

38. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I do receive advertisement from windows 10. We need to jump through hoops to disable it. In fact I have never receive such intrusive ads directly from Google before. Lock screen Ads. http://www.howtogeek.com/243263/how-to-disable-ads-on-your-windows-10-lock-screen/

39. krystian

Posts: 423; Member since: Mar 16, 2016

That was all configurable during installation but people just hit Next and don't read. And that's not hoops lol. A lot of the app suggestions I leave on because it has lead me to some really good suggestions. It is basically beneficial to users. The average user will not find issue with it, only the old school desktop users will. But all us old school people will die off. The younger generations are the future. They grew up on tablets and smartphones..

40. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Please read your comment again. There are always reason for Microsoft misstep while Google is the evil one. I am using both Windows 10 desktop and a Windows 10 mobile as my daily driver now to get my views into perspectives. 'As for old school people will die off' and the next generation would love Microsoft your beloved company. Don't count on that. In the 90s, most people hate Microsoft business monopoly use Nokia phone. Those people are in their 20~30. Today they are in their 40s. The new generation use Google in school and Android mobile. Microsoft the bastard for most people has fan reaction when they lose market share. So you expect Google user/fan to be different. Another observation is we will probably see third world war before it all end. So just chilled and enjoy your gadget. Be it Windows Mobile or iOS or Android.

25. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Can I have what you're smoking? The Surface is already biting at the heels of the iPad which is falling in market share. While the Apple iPad is still dominant (at 32.5% market share), the Microsoft Surface Book increased in market share by 9% in Q1 (to second place and 25%) over the same quarter last year while the iPad leveled off. Also, laplets like the Surface Book accounted for 33% of all tablet sales.May 12, 2016. So you Microsoft haters! I'm betting by this time next year both will be neck an neck with Surface passing the iPad in 2018. While Tim Cook and comps y with their ignorance, tried to claim the Surface sucked at being both a tablet or laptop, yet they tried to make the iPad look the same. They were too cheap to include the pencil. Even though Windows is not directly design foe touch, it still works. The UI doesn't need to working like Android or IOS. Apple should have had a Mac hybrid when they first made the iPad. Steve Jobs is stupid and so is Cook. Convergence has always been the best route. Look at mukti-fuction printers and smartphone and things like SUN's. Wake up dude. With Windows on ARM natively supporting X86, Microsoft is about to nearly kill off any tart not able to offer similar capabilities. After seeing the new Windows on ARM the way it should have been, Apple and Google are about to feel a huge pinch. Apple especially with their one trick pony.

5. Clars123

Posts: 1079; Member since: Mar 16, 2015

Hahahahhahaha...what?

6. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

They have a long way to go to reach that dream, but I can see it materializing if they make yet another game changing product with the Surface Phone + Windows 10 on ARM. More specifically, materialize my Smartphone wish ( http://sck.pm/5L ).

7. Settings

Posts: 2943; Member since: Jul 02, 2014

Without Microsoft, Apple is nothing.

9. airoid

Posts: 132; Member since: Dec 13, 2016

Not to mention Google (apps) and papa Samedung (hardware) to help Apple's iPhone in 2007, without them Apple is like handicap old man.

11. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Not to mention without the android OS courtesy of Google, Samsung phones wouldn't be able to run. And before you even try with mentioning Tizen, let me ask how are you liking Tizen on your S7? S7 Edge? Note 5? Note 4? Did the Note 7 run Tizen? Yeah, nice try, but you've failed.

17. PapaJi

Posts: 60; Member since: May 15, 2016

It will not take Samsung more then one year to replace android with Tizen....( if Samsung want)

12. piyath

Posts: 2445; Member since: Mar 23, 2012

This idea is just absurd and hilarious. Microsoft is a software company, Yes. But do they make them anymore?? No. Why? Because you cannot get rich by selling $5, $10 software. And there are many more third party software companies rising up so Microsoft cannot have that luxury anymore. They should have done something before software like Facebook come up. LinkedIn is a poor social media platform only for professionals. They have brains unlike uneducated fools thus they don't click on adds or links. So you cannot expect to earn money just because they are rich. The only way to get rich is selling hardware. Microsoft has realized that and that's why they are pushing Surface pro, surface book and surface pro lines now. They don't make premium software anymore. Their only hope is Windows and Office, which people don't like to pay for most of the time.

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