Who would have thought 10 years ago that Apple ($AAPL), then valued at an $8 billion market cap, would meet, then exceed Microsoft's ($MSFT) $200 billlion market cap by 2011?
We could say so many things about Apple's historic transformation from tech also-ran to re-emergent industry leader in that time. You could also write a book describing Microsoft's eroding dominance and its stagnating shareholder returns in the post-PC world.
Or we could just look at the chart above and know that a picture is worth a thousand words.
3 comments:
ironically, aapl is trading at it's lowest p/e in 12 years and the peg ratio is much lower than msft. so their has been very 0 premium on the stock. it has merely tracked the earnings growth... lol.
Pictures are not the entire story without considering valuation. In the early 2000's Microsoft was part of an historic bubble and selling at an outrageous valuation. If it had been selling at the same valuation levels as Apple the chart would look very different today.
Anything can happen. MSFT is dead money!
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