Michael Markowski at Equity is placing his bet on Microsoft becoming the first company to be worth the highly coveted one trillion dollars. So far it's been a race between Apple, Google, and Microsoft, but Markowski claims he is pretty certain that the market cap will be handed to a highly scalable digital company. One just like Microsoft.
In his prediction, the financial journalist noted that Microsoft is at the top of his list for three major reasons:
- Microsoft’s free cash flow yield, highest of all contestants.
- LinkedIn acquisition expands Microsoft’s PE multiple.
- Microsoft in position to play key role in new Social Investing industry which is the key to drive crowdfunding to ubiquity.
In fact, LinkedIn's acquisition could be the key to Microsoft unlocking the one trillion market cap. Markowski goes on to explain that Microsoft paid only $60 per user compared to Facebook user value at $218. This 'social media play' is at the beginning of a shift towards Social Investing Community, where equity crowdfunding is predicted to be booming in less than ten years.
Moving from a hardware focus to a digital one is believed to pave the way for Microsoft to overtake Apple on the scoreboard, at least. But with the position of the Redmond tech giant slipping into equity crowdfunding, Markowsky expects that public fascination with making routine investments with hopes of big payoff will boost it forward as early as 2025. Actually, the only thing that might stand in Microsoft's way now might be Google.