Wednesday, April 21, 2010
As an alert reader pointed out, the difference between the market caps of AAPL and MSFT is $40 billion, not $30 billion; I think my calculator failed me yesterday. Nevertheless, this is perhaps the most impressive David vs. Goliath story in modern finance: Apple's comeback from the brink of oblivion 12 years ago.
Another very interesting observation occurs to me: the amount of market cap that Microsoft has lost ($311 billion) since its late 1999 peak ($586 billion) is substantially more (32%) than Apple's market cap today ($235 billion). Even after adjusting for its $32 billion cash payout several years ago, and its ongoing dividend, it's remarkable the value that has been destroyed by Microsoft's inability to innovate.
Posted by Scott Grannis at 11:13 AM