Ecosystems Rule The World ($AAPL, $GOOG, $MSFT, $AMZN, $FB)

By: ispeculatornew
Date posted: 08.07.2014 (3:00 am) | Write a Comment  (0 Comments)

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ecosystemI’m sure that some of you think I should move on from this topic. I can’t:) I’m sorry but even though this gets talked about a decent amount, I still feel like most of us underestimate the impact of the ecosystems in this new “digital” era. The bigger ecosystems are able to create a world where they can leverage the network in multiple ways. I’ve discussed the fact that I consider there are currently 5 core ecosystem plays:

-Apple (AAPL)
-Google (GOOG)
-Microsoft (MSFT)
-Amazon (AMZN)
-Facebook (FB)

Each have their own strenghts and weaknesses but they are all gradually taking over the world. Think I’m exagerating? Look at the top 5 (by market cap) technology stocks in the US?

AAPL 575.73B
GOOG 392.50B
MSFT 357.01B
IBM 193.11B
FB 189.06B

And if you are wondering how long IBM can hang on here, just look at this chart:

IBM Market Cap Chart

IBM Market Cap data by YCharts

Of course, IBM will not just stand still. Their biggest move lately has been to team up with Apple in what is a great alliance, especially for Apple.  The company led by Tim Cook has had a lot of success in the past few years but one area where it has clearly lagged is having a strong presence with big corporations. Apple has never been a player willing to compromise/bend over in order to go after those contracts and will now have IBM working on doing just that.

Who Are You Betting On?

As you might already know, I already have significant positions on Apple (AAPL) and Facebook (FB) and will likely add some others in the near future.  I’m also looking for smaller players that could eventually do well in this new world.

Have any of you been investing based on this new world?

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