Invest in apple or microsoft

Apple Vs Microsoft Stock: Which Is Best?

Investing in big-name stocks like Apple [NASDAQ: AAPL] or Microsoft [NASDAQ: MSFT] may seem like a no-brainer. At different times, both of these companies have reached a market capitalization of a trillion dollars – That’s more than the GDP of either Switzerland, Sweden, or Belgium.

With that type of money, buying stock in the future of a tech titan seems smart, but investing in these companies does come with pros and cons. Take the time to educate yourself about any stock before you invest, including the big-name ones.

The Pros and Cons of Investing in Tech Titans

When you buy a share in any stock, you are making a bet that the company will be able to keep generating returns. Exactly how much of a return of investment you expect will depend on your interpretation of the company’s revenue streams and market opportunities. In the case of tech titans, you are effectively betting that their products and services will continue to be successful and that their market share or number of users will grow.

The thing is that tech titan stocks are huge, and the prospect of them growing too much bigger is not as (seemingly) inevitable as it was. Many people already have computers. To generate more revenue, big tech companies need to provide something different by evolving or expanding their offerings.

Software and cloud-based applications are one possibility, as are smartphones and tablets, but where does it end and is there enough room for growth that you will be able to see the type of return on investment want?

At the same time, you need to keep in mind that these companies are not the only ones competing in the tech space. Other companies many phones and computers, other businesses sell services. Some are enormous, such as Alphabet [NASDAQ: GOOGL] and Amazon [NASDAQ: AMZN] while others are major players in their own little niche, like Oracle [NYSE: ORCL] or Pandora.

Is Apple Stock A Buy?

Apple [NASDAQ: AAPL] is one of the most significant holdings in the Berkshire Hathaway portfolio. With almost $50 billion in shares, Warren Buffett’s firm is Apple’s third largest institutional investor – a position that is prominent enough to provoke the company to create a game just for the famous investor (It’s called “Warren Buffett’s Paper Wizard“).

But even the confidence of the world’s most popular investor is not enough. You never want to make a blind investment.

Here are some of the reasons to be cautious about investing in Apple:

1. Economy: Apple is heavily influenced by economic conditions.

Aside from the premium its products command and the way that a poor economy or job situation could compound any issue there, the company is also affected by the economy in other places.

The majority of Apple’s revenue comes from outside of the United States as does many of its products, components, etc. If a poor economy limited one of those assets, the company would feel it.

2. Competition: Samsung in particular is a serious threat

Apple [NASDAQ: AAPL] has, so far, been able to compete by introducing new and novel products, but there are businesses coming up with new things all the time, most notably Samsung.

Apple has to work hard to maintain its edge and ensure that it stays true to what customers expect from its brand in terms of features, quality, and design or it could lose some of them.

To do this, Apple has purchased dozens of companies over the past 20 years, absorbing them for their respective software or hardware developments.

3. Intellectual Property

Some of Apple’s developments have resulted in patents and in other cases, Apple has come into some issues regarding intellectual property, such as a ruling that Apple infringed on certain patents owned by Qualcomm.

4. Third-party Content

Apple [NASDAQ: AAPL] has many contracts in place that allow its users to run third-party software and access third-party content.

From the latest music or movies to certain apps and software, Apple has to be able to work with those parties in order to provide what its customers want.

Should You Invest in Microsoft?

Microsoft also faces certain risk factors.

Like Apple, the company needs to be able to attract or access third-party content and it could be impacted by the economy or competition. However, Microsoft has a unique struggle – ecosystems.

One of the ways that Microsoft [NASDAQ: MSFT] has competed for years is by establishing a platform-ecosystem.

Essentially, this means that because everything runs on Windows, people will need computers than can run on Windows and software that integrates with the system.

These vertically-integrated systems are good for effectively trapping customers into one OS – Are you Mac or PC? – but times are changing.

Cloud-based services have eroded some of that and Microsoft [NASDAQ: MSFT] needs to figure out new ways to compete.

One strategy the company announced recently is to team up with Apple to offer iCloud for Windows, but time will see whether Microsoft can compete as tech evolves.

Acquisitions and investments in popular platforms, virtual reality, AI, and blockchain are a start, but not a complete picture.

Apple Vs Microsoft Stock: The Bottom Line

Right now, Apple [NASDAQ: AAPL] has a market cap of $899 billion and a forward PE of 15.40. It is currently priced at $195.13 on a 52-week range of $142 to $233.47, suggesting the stock price is somewhat volatile. With these numbers, Apple looks more like a value stock.

In comparison, Microsoft is priced at $132.22 per share and has a 52-week range of $93.96 to $134.24. Its market cap is $1.01 trillion, and it is priced at 25.87 times its future earnings.

That said, betting on either company really comes down to how well you think each one will leverage its strengths, overcome its weaknesses, and take advantage of its opportunities. However, keep in mind that you don’t have choose only one – or one at all.

#1 Stock For The Next 7 Days

When Financhill publishes its #1 stock, listen up. After all, the #1 stock is the cream of the crop, even when markets crash.

Financhill just revealed its top stock for investors right now. so there’s no better time to claim your slice of the pie.

The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.

Источник

Что выбрать: Apple или Microsoft?

Обвал последних четырех недель не пощадил никого. Позиции технологических гигантов, которые возглавляли «бычье ралли» последнего десятилетия, резко пошатнулись. Инвесторы без разбора распродавали акции после вспышки эпидемии коронавируса в США.

Несмотря на то, что экономика и финансовые рынки все еще претерпевают структурные изменения, текущая динамика цен говорит о готовности инвесторов воспользоваться просадкой цен и скупить бумаги ряда ведущих компаний (которые раньше были чрезмерно дорогими).

Ниже мы рассмотрим Apple (NASDAQ: AAPL ) и Microsoft (NASDAQ: MSFT ) — двух гигантов с более чем триллионной капитализацией — и попытаемся выбрать фаворита на тот период, когда уляжется пыль, а COVID-19 будет побежден.

Apple и ее денежная подушка

Акции производителя iPhone, одного из 30 представителей Dow Jones Industrial Average , оказались в числе главных жертв распродажи. К 23 марта они опустились на 35% ниже своего максимума от 29 января в $327,85.

Но рынки начали восстанавливаться от сильнейшего обвала с момента финансового кризиса 2008 года, и Apple также прокатилась на этой волне, прибавив около 20% по сравнению с месячными минимумами. Вчера акции закрылись ростом на 2,8% до $254,81.

Коронавирус, жертвами которого стали 3170 американцев (а число инфицированных превысило 160 тысяч), сильно ударил по технологическим компаниям, особенно по их позициям на рынках Азии. Apple, которая генерирует в Китае около 20% своей выручки и в значительной степени полагается на азиатскую страну в рамках производства своих устройств, особенно уязвима.

Вспышка COVID-19 и ответные меры подняли ряд проблем, включая перебои в производственной цепочке Apple. Например, магазины Apple за пределами Китая закрыты до дальнейшего уведомления, и до конца апреля многие регионы США останутся под жестким карантином.

Аналитики также опасаются, что кризис коронавируса может задержать запуск новых iPhone и внедрение устройств с поддержкой 5G, которые обладают огромным потенциалом роста.

Но это временные проблемы, которые могут повлиять на финансовые результаты следующих нескольких кварталов. Однако инвесторов привлекает огромная инновационная экосистема Apple и ее огромные запасы денежных средств.

Аналитик Evercore ISI Амит Дарьянани отмечает, что акции технологических компаний, располагающих внушительными запасами денег, сильнее прочих готовы противостоять шторму. «Производитель iPhone обладает самыми большими запасами наличности среди всех рассматриваемых нами компаний», — отметил Дарьянани. В настоящее время Apple имеет в своем распоряжении около 207 миллиардов долларов наличными и около 108 миллиардов долларов в виде краткосрочных и долгосрочных кредитов.

Облачные технологии на службе Microsoft

Несмотря на экономическую неопределенность, вызванную вспышкой коронавируса, Microsoft является одной из тех технологических компаний, которые зарабатывают на возросшем числе людей, работающих из дома.

Основная причина оптимизма в отношении акций Microsoft в долгосрочной перспективе заключается в том, что компании и правительства будут продолжать тратить средства на облачные технологии, которые в последние годы стали ключевой областью роста компании .

«Мы наблюдали рост спроса на наши облачные сервисы на 775% в регионах, закрытых на карантин (или принимающих меры по социальному дистанцированию)», — говорится в сообщении Microsoft.

Приложение Microsoft Teams, которое позволяет людям проводить видеоконференции и обмениваться сообщениями в чате, зафиксировало рост числа ежедневных пользователей на 12 миллионов в течение одной недели (показатель достиг 44 миллионов). А вчера Microsoft представила версию своего пакета Microsoft 365, которая сделает Teams доступным для потребителей.

40 миллионов пользователей также ежедневно используют старое приложение Skype, что на 70% больше, чем месяц назад, сообщает Microsoft.

После всех потрясений фондового рынка акции Microsoft вернулись на положительную территорию, прибавив более 1% по сравнению с началом года. Вчера акции закрылись на отметке $160,23 за счет 7-процентного скачка. В прошлом году бумаги Microsoft были одним из самых удачных вложений в секторе высоких технологий, принеся инвесторам прибыль в размере 60%.

Подведем итог

Apple и Microsoft являются одними из самых устойчивых технологических гигантов, которые способны выжить в условиях экономического спада благодаря мощным линейкам их продуктов и стабильным балансам. При этом очевидно, что Apple из-за перебоев в цепочке поставок сталкивается с более серьезными препятствиями, чем Microsoft, что делает производителя iPhone более рискованной ставкой в краткосрочной перспективе.

Источник

Apple vs Microsoft, Who Will Win?

Apple and Microsoft have often been painted as bitter enemies in the tech industry. When it comes to Apple vs Microsoft, Apple has surpassed Microsoft as a leader in what some could consider designer tech. Apple has cornered the market on products that are as gorgeous as they are functional. Microsoft, however, has made a name for itself creating high functioning personal computers, tablets, and cloud computing platforms while Apple has yet to dip its toes into the cloud other than for personal storage with iCloud. Both companies have an incredible amount of influence in the tech industry given their history and their continuing success since their creation.

Related Posts
What is a Penny Stock? And Why You Should Likely Avoid These
Internet Marketing, Why SEO Is Impossible But Stock Picking Is Not!
Make Money in Stocks, the Surefire Technique for Financial Growth
Robinhood IPO, Speculating on the Popular Trading App
Airbnb IPO, A Hotel Stock During a Pandemic?
Why Do REITs Pay Out 90% of Their Profits As Dividends?
Ben Felix Review, Why I Like The Ben Felix Youtube Channel
Wish IPO, Is the E-Commerce Site Worth It?
Stock Forecast Next 3 Months, Why The Dow Will Bottom at 14,000
Venmo IPO, Why Venmo Probably Won’t IPO Anytime Soon
Tinder IPO, A Sexy Premise Worth Over $10 Billion
Tik Tok IPO, Does Tik Tok Compete With Facebook?
Slack IPO, How Does Slack Compare to Discord and Skype?
Spotify IPO, Music to Investors’ Ears?
Chewy IPO, How Does Chewy Compare to Pets.com?
Fender Stock, Why Did Fender’s IPO Fail?
Apple vs Microsoft, Which Tech Giant Should You Invest In?
Skype IPO, The Largest VoIP Provider
Dropbox IPO, Comparing Dropbox to iCloud and Google Drive
Pinterest IPO, Can Pinterest Compete with Facebook?

Apple Stock Pricing

Apple stock, at the time of writing this, sits at $293.16 per share and has not been impacted heavily by the coronavirus pandemic. However, many people believe that due to an economic recession companies in tech may see losses later in the year as opposed to now. Apple stock is currently sitting near fair value, it is neither undervalued or overvalued, and as a result is a good buying option as opposed to overvalued stocks as it is priced fairly.

Microsoft Stock Pricing

Microsoft stock, at the time of writing this, sits at $178.84 per share and has been impacted even less than Apple stock during the pandemic, even increasing over the previous two months. Microsoft stock is currently overvalued meaning you’ll likely pay a much higher price than the stock is currently worth. Its PE ratio is 29.8 as opposed to Apple’s 23.

Apple vs Microsoft Chart Events and Future Projections

Currently Apple is showing a bullish pattern where the price crosses the moving average. Projections indicate that the stock over the short-term, two weeks to six weeks, mid-term, six weeks to nine months, and long-term, longer than nine months, is going to increase. Though an economic recession is likely upon us it does seem as if though Apple and Microsoft will fare well through it. Apple has just released its new iPhone SE and iPad which aims to compete with Microsoft’s tablet that has been on the market for several years, the Microsoft Surface. These devices are likely going to draw a profit regardless of economic turmoil.

Microsoft is currently showing a bearish pattern. Projections for the company’s stock are similar to Apple, other than short-term, in that short-term looks have a neutral outcome, and mid-term and long-term are projected to increase in price. Projections for Microsoft look good due to Microsoft’s announcement of a new dual screen Surface tablet which will feature two screens and combine Microsoft and Android into a single device. This device, and the whole family of dual screen surfaces, will drop closer to the end of this year. The timing of this device’s release will allow the country to recover economically and estimated profits of this device to be closer to projections.

What Should You Buy? Apple vs Microsoft

Whether you’re the type to pin Apple vs Microsoft, or think both have a place in the tech world, either Apple or Microsoft is a good option when picking stocks. Both are safe, have been largely unaffected by economic turmoil, and have major device drops that will guarantee good profits over the next few months. Simply due to apples fair value and Microsoft’s overvalued state if you had to pick between the two Apple would likely be your way to go.

Источник