Apple (AAPL) leaps past Microsoft (MSFT) as the top tech company

By: ispeculatornew
Date posted: 05.27.2010 (4:01 am) | Write a Comment  (6 Comments)

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It would have been deemed impossible a decade ago. The tiny computer company behind Apple computers competing with the King of PC’s, the company behind cash cows such as Microsoft Office and Microsoft Windows. Microsoft seemed like a train that no one could stop and it was so bad that Microsoft had all kinds of issues with antitrust regulations. As you can imagine, those do not come up when things are not going well and they were going very well for Microsoft. The company had superior products and was using them to gain the edge everywhere else. Remember how Internet Explorer used to be the only internet browser worth mentioning. How things have changed…

Apple becomes a multiple trick company

Back in those days, Apple was about one thing…Mac computers. Since then, Apple has added a very very powerful set of devices including the Ipod, Iphone and Ipod. They have all been major hits and have taken Apple beyond what anyone could have even hoped for. Apple is now the top tech company in the world in terms of market cap and the third biggest company out there behind two oil giants.

Here are the top companies in the US in terms of market cap:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
TRIPTripAdvisor Inc65.5751.0626.53-23.3819.743.089.721.5110.3624.16N/A
YELPYelp Inc21.75N/A26.7-26.3945.63.549.191.267.3659.08N/A

Who is next?

Is it by chance that the same day where Apple reached this incredible feat, we found out that the US government was looking into the way (abuse of a monopoly) Apple was operating its Itunes store? Probably not. There seems to be something that says that the biggest tech company has to be abusing of its position. It’s always easier to attach the king of the hill and Apple certainly looks like a great target. Competitors have been putting a lot of money and effort into competing with Apple but with no success yet. However, I would not dismiss the competition as we easily could have done the same with Microsoft. It did seem unbeatable not too long ago.

So among those that can challenge as the top tech company, only one comes to mind right now; Google. It is ranked #18 in the world and #3 in tech companies and is probably the odds on favorite to take over as the top tech company… Of course, I did admit having fallen for Google so maybe I’m not seeing clearly here… Thoughts?

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  1. Comment by John — May 27, 2010 @ 5:51 am

    It’s pretty neat that Apple is first for return YTD and 1Year return. What’s amazing is that Apple has been able to grow by developing internally, not via acquisition and merger. Ouch, Google is the poorest performer YTD, with nearly -25%…

  2. Comment by IS — May 27, 2010 @ 10:49 am

    @John – Had not even noticed that, that is impressive indeed. And yes, very good point about Apple. Reaching the top without major (there have been many smaller ones in recent months) is certainly very impressive. And Google… yeah, I’ll avoid thinking about it for today:)

  3. Comment by John — May 27, 2010 @ 1:06 pm

    get over your ex 🙂

  4. […] Intelligent Speculator highlighted the big news of last week, i.e. Apple has surpassed Microsoft in term of market capitalization. […]

  5. Comment by Cynical Investor — May 30, 2010 @ 3:11 pm

    I know it is a cliche but what goes up goes down.

  6. Comment by IS — May 30, 2010 @ 8:23 pm

    @Cynical Investor – Well I`m sure someone said that about IBM when it lost its “Top Tech” company status….

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