Connect with us

Money

Apple And Microsoft In Race To Be The World’s Most Valuable Tech Company

Published

on

Recently, Microsoft [MSFT] overtook Apple [AAPL] in market cap for the first time in eight years. On Nov. 26, 2018, Microsoft briefly clinched a market cap of $812.93B while Apple’s market cap at that time stood at $812.6B.

While Microsoft briefly held the title of the most valuable company in the United States, it is likely that the two companies will trade back and forth for this title, at least in the short term.

Apple overtook Microsoft in 2010

Apple first overtook Microsoft about eight years ago. It was described to be a watershed move, highlighting that “the most important technology product no longer sits on your desk but rather in your hand.”

In 2010, the Apple iPhone was just two years into its launch and was fast gaining traction in the smartphone market. The device, in fact, revolutionized the usage of mobile devices and even compelled mobile heavyweights such as Nokia [NOK] and Blackberry [BB] to exit markets.

The iPhone is still Apple’s flagship product and accounts for almost 60% of company sales. Driven by phenomenal growth, Apple was the first public company in the country to be valued at $1T earlier this year.

Slow iPhone demand 

The global smartphone market is in a cycle of decline. Though Apple continues to outperform the global market, demand for its iPhone has been lower than estimated. Analysts have been concerned for some time over Apple’s slowing iPhone demand driven by supply chain reports.

Apple also stated that it would no longer publish device sales going forward, further adding fuel to fire. The tariff war between United and China might further amount to a short-term weakness for Apple shares.

Microsoft a top performing stock

Microsoft has been a top pick for investors in this extended bull run. Despite the upbeat momentum, Apple’s mind-boggling growth has dwarfed Microsoft’s spectacular returns.

Microsoft’s Satya Nadella was appointed the company’s CEO back in 2014, post which the company upped the ante on the development of cloud products and services. Microsoft overtook Google [GOOGL] in market value earlier this year and surpassed Amazon [AMZN] last month.

As seen below, Amazon overtook Microsoft in market cap early this year before Microsoft returned the favor.

Its diversified business portfolio provides more cushion for Microsoft in a downturn. For example, Microsoft’s sales from Windows, Xbox and Surface verticals accounts for 36% of total revenue. Compare this with Google where advertising accounts for 86% of sales.

Microsoft unsuccessfully tried to enter the smartphone space with the Windows phone. Its now trained its guns on high growth areas such as artificial intelligence, cloud, and cross-platform technologies.

Can Microsoft beat Apple to $1T?

We’ve seen that growth concerns for the iPhone coupled with macroeconomic uncertainty in terms of the tariff war will continue to weigh in on Apple’s stock price. Apple’s sales are expected to rise by 5.2% to $279.3B in 2019 and 4.2% to $291.14B in 2020.

Comparatively, Microsoft’s sales are expected to rise 13% in 2019 and 10.6% in 2020. A higher growth rate might benefit Microsoft’s share price especially when uncertainty looms large over Apple.

Money

INFOGRAPHIC: How To Invest Your Money (In 8 Simple Steps)

Published

on

Plenty of savers are making do with low rates of return on their deposits—almost eroding the value of their savings. Here’s a guide on how you should invest your money and gain some great returns off it.

Continue Reading

Money

Stock Trading: How to Choose the Best Online Brokers

Published

on

Stock trading can be a risky business but done right it is an extremely lucrative investment option which yields excellent returns. It is true that trading is quite intimidating for someone who is new to the market and its ways which gives rise to the need for a good stock broker who can handle the job and ensure that the client gets the best returns possible for the money he or she is investing. But as a new investor it is absolutely important that you choose a very good trading broker. Here are some tips that will help you make that choice better.

Understand your trading needs

Before you even look into the services of a trading broker, it is essential that you are aware of your goals and needs from your stock trading. Firstly, prioritise your investment value, short term and long-term goal, and time that you are willing to spend on your trading in order to figure out where you stand. Now, narrow down on the specific kinds of stock exchange that you are looking into. With the wide variety of options available that you can choose from, it is important to narrow down to the specific field or fields and finally look for brokers who suit your specific needs.

Have a clear talk about trading fees

It is important to have a clear-cut discussion on brokerage fee and commissions that your broker will charge you. Ask about the charges per transaction, basic account charges, account minimums and even reimbursements if and when you choose to part ways so that you can have a proper idea about how much you are about to fork out for your trading. It is a good idea to have the talk beforehand so that you do not get into an arrangement which later becomes financially burdensome for you.

Look up reviews on the broker

You would not buy a new product without checking what its previous users have to say, right? Similarly, look up your prospective brokers No matter how promising or lucrative a broker seems with the terms, make sure you check the reviews by InvestinGoal to ensure that you are actually getting a good deal and not being sweet talked into not a good broker or even worse, being conned of your money.

Ask your questions

Do not be afraid to ask whatever questions that come to your mind before you make a deal. This will help you understand your trading better and thus, to get the absolute best out of your investment. It will also help you uncover any hidden charges, non transparent clauses as well that might have later hindered the desirable growth of your stock.

Give a test run

Ask the broker if you can give a test run of your account, and his technology before you actually invest your hard earned money. Many brokers allow you to create a free account which you can use to test their platform and check out user friendliness, ease of trading, quality of tools etc and thus, make an educated decision.

Getting the right broker is definitely one step towards a good stock trading investment. Therefore, it is very important that you take utmost care in picking the very best broker for your trading needs.

This article originally appeared on ValueWalk. Follow ValueWalk on Twitter, Instagram and Facebook.

Continue Reading

Money

3 Simple Steps To Build Your Investment Portfolio

Published

on

If you’re starting out with planning your investments, chalking out your goals and how you’d like to achieve them is incredibly important. You’ll need to understand what kind of assets you’d like to invest in–be it exotic instruments like private equity or the tried and tested ones like the treasury bonds, ETFs and stocks–and invest right. Here are three key strategies to build your portfolio:

1. Building Wealth Is All About Thinking Rationally (And Smart)

Having the right mindset can play a huge role in how you build your investments. It’s simply not just about strategy. To ditch following the latest fad in the market, you need to be responsible and have a sense of social indifference–coupled with confidence and patience.

2. Invest Like A Cheapskate

If you’re pumping in $150,000 as investment, on which you incur 1% as fees, look out for ways through which you can cut them down.

If you were to cut costs by a little more than a half, that’s saving you at least $1,120 in fees every year. But that’s not it–when this saving is compounded every year, that 1% fee can tally up to a million (if saved, could win you your big ticket to becoming a millionaire!)

3. The KISS (Keep It Simple, Silly) Rule

Funnily enough, most of us think investing your way through millions demands extensive knowledge of financial instruments or strategies. Surprisingly, it’s the simplest of assets that gave the biggest investors their biggest wins. Many successful investors highlight their success to stocks, bonds and other popular alternative investments, patiently held over time.

Continue Reading

Trending