And yet, here we are. Today, Microsoft is worth some $33 billion more than Apple. And $30 billion more than Amazon. Microsoft, at $833 billion, is once again the stock market king.
But why? And how? Well beyond the obvious falls of Apple and Amazon (relatively speaking, of course), Microsoft has fared far better in the broader market sell-off of recent weeks and months. But there’s clearly something more fundamental going on: Microsoft is back in growth mode.
Then in walked Satya Nadella with a crazy plan: forget selling packaged software, we’re a services business now. This general game plan has worked in the past, with IBM a couple decades ago (though with the latest Red Hat Hail Mary, we’ll see…
), and more recently with Adobe. But never like this. Again, Microsoft is a growth company again. And Wall Street can’t get enough.
There’s a long-standing joke
amongst Apple-watchers about the company being “doomed”. Basically, it has been said about Apple every single year since it was actually doomed, all those years ago
. Of course, as noted above, Apple has thrived in a way no other company has before them. But we are now seeing a world in which Apple falls. Not doomed, mind you. But no longer the most valuable company in the world. Because the stock market is all about buying the future. And Apple’s growth has stalled.
And it will be very, very hard for them to get back to growth. Not because they’re not a great company, but because their key product, the iPhone, was one of the —if not the
— greatest product ever, from a business perspective
. It doesn’t just seem unlikely
that they’ll be able to top it, it seems impossible
Of course, I would have said the same thing about Microsoft…
Drinking: a Magnolia Kalifornia Kolsch 🍻