Microsoft is oozing with power and dominance of becoming the first tech company to hit a market value of $1 trillion after reports claimed that it has recently acquired LinkedIn. Reports buzzing online pinned to the fact that even though its market value is trailing that of Apple and Alphabet, analyst Michael Markowski of Equities.com is optimistic that with the firm's current acquisition it is as if it has hit the sweepstakes to become the first digital company to get to a trillion-dollar market cap.
According to Windows Central, Markowski pointed out that LinkedIn not only gives Microsoft a leg in the business social media sphere, but also puts the company a unique position to leverage the burgeoning crowdfunding market, an area Markowski sees as the next big avenue of growth on the internet. The source added that under Satya Nadella's reign as CEO, Microsoft has certainly been moving in the right direction.
In a news article written by Markowski at Equities, he emphasized that online and digital companies have the highest profit margins and have superb cash flow when compared to non-digital companies stressing that digital companies have highly scalable models that address more than a billion individuals.
Microsoft, which has joined in the sphere of the digital economy makes it eligible to win the race to a trillion sweepstakes. Markowski reasoned that with the acquisition, Microsoft's free cash flow yield is highest of all contestants, LinkedIn acquisition expands Microsoft's PE multiple, and Microsoft is in the position now to play key role in new Social Investing industry which is the key to drive crowdfunding to ubiquity.
Given the continuous success with the company's software services, Surface hardware and future new arenas the company might decide to explore in the coming years, it would not be too hard to guess that Microsoft may propel towards Markowski's predictions. It is worth noting that Microsoft market cap now sits at around $491 billion, which is just behind Apple with $617 billion and Alphabet with $548 billion.
