Apple's Worth More Than Microsoft—to Gamblers

It's got a lot of growing to do
By Kevin Spak,  Newser Staff
Posted May 27, 2010 12:09 PM CDT
Updated May 27, 2010 12:16 PM CDT
Apple's Worth More Than Microsoft—to Gamblers
One of the first customers to buy an iPad on the first day of its release holds a pair of them aloft triumphantly in this April 3, 2010 file photo.   (AP Photo/Paul Sakuma, file)

In case you haven't heard, Apple has passed Microsoft in market value. But is it really worth more? Sure, if you're feeling lucky, writes Henry Blodget for Business Insider. Microsoft's free cash flow is roughly double Apple's, so right now they're way out of whack, but Apple is growing much faster. If you think that'll continue—and based on its current product outlook, that seems reasonable—then sure, buy some AAPL. Because "for today's market values to make sense, Apple has to catch up and pass Microsoft's cash flow within, say, 5-10 years."

But 10 years ago, the fact that Microsoft was worth 35 times more than Apple seemed just as reasonable. Things changed—so much so that, as Dan Nosowitz of Fast Company points out, Apple and Microsoft might not even be competitors anymore. This is a story about very different companies; it “isn't Pepsi overcoming Coke.” Right now superior marketing has put Apple on top, but the landscape's evolving even more rapidly now. “Anything can happen," Blodget warns. "So step right up and place your bets!” (More Apple stories.)

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