Saturday, January 26, 2013

Is Apple the New Microsoft?




According Yahoo/Jeff Macke: As all 7 billion people on earth know, Apple tanked this past week after the company's holiday quarter and guidance fell short of expectations. No need to rehash the misery. The only question now is whether Apple is just going through a short-term transition or is slowly becoming a modern day version of its long-time nemesis Microsoft

Count investor/ author/ entrepreneur Carol Roth as one of those in the camp that says Apple's best days are behind it. "There is a point in time when these companies become too big to succeed," Roth says. "Apple now is twice Microsoft's size, approximately, and I think it's running into the same issues; it's very hard to get that huge growth when you are so large."

As derided as Microsoft is, it's easy to forget that it's one of the most successful, groundbreaking companies in history. For all the high-profile failures, Mr Softie has dominated its markets for at least the last 20 years. In its fiscal second-quarter, Microsoft earned $6.38 billion on $21.4 billion in sales — a nearly 30% net margin selling products no one seems to like. Microsoft is sitting on more than $68 billion in cash and short-term investments. In its Q2 Microsoft spent $1.7 billion on buybacks, $1.93 billion on dividends, $311 on acquisitions and nearly a billion on capital assets, but it still added $1.67 billion to its coffers. Despite it all, Microsoft's stock hasn't gone anywhere for a decade…..


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