So what exactly is Market Cap then?

Never mind - thanks to Wikipedia,  Market Cap is a measurement of size of a business enterprise equal to the share price times the number of shares outstanding of a public company.

Yeah, so IMO it doesn’t mean too much in the real world. M$ still has higher gross and net revenues and there are more Windows machines out there then Macs. It’s a bragging rights thing.

What is important is not a few billion in terms of who is bigger - what is important is that the market values Apple more than Microsoft, i.e. Apple is perceived as the one who is going to really grow, open up new markets, and pave the way for the future.

What happens in two years when a lot of PC owners decide they don’t really need another PC but rather the latest iPad? Microsoft’s main income is from Windows (OEM sales) and Microsoft Office - neither of which are on the iPhone or iPad. Not to mention their shrinking browser share.

Suddenly, all these other business units that have been a drag on their income either have to become profitable or they are going to be sold off because the shareholders are going to show up with pitchforks.

Microsoft’s business plan is still far too tied to Windows and Office and the thing that made it most successful could become it’s worst obstacle in moving forward into this new world.

Standing on your old strategies will lead to watching others move forward.

Market cap has now become a totally useless indicator of company value.  I don’t know what all those other companies with high market caps were crowing about in the past.  I’m also learning that a company that is debt-free isn’t really all that special and having lots of reserve cash has a tendency to devalue a company.  True financial value has always given me a headache.

The original Shelby Daytona Coupes could have been bought for about $7,000 - $10,000 right after they were retired from racing yet one recently sold for about $7.25 million dollars.  Go figure.  What’s the REAL value of a Shelby Daytona Coupe?

Too bad Apple doesn’t build SDCs, then it might have some real worth.

Too bad Apple doesn’t build SDCs, then it might have some real worth.

And if they did it would be easy to drive and would never crash.
LOL

Wouldn’t the fact that in recent years Microsoft completed a $40bn share buyback, and are now part way through another $40bn buyback completely skew this story?