http://www.theverge.com/2016/11/16/13651940/microsoft-linux-foundation-membership

Microsoft could beat Google to become first $1 trillion Tech Company

The acquisition of LinkedIn by Microsoft earlier came as a big surprise for the entire world. More than ever the company has now got the opportunity to gain more likes than Apple and Google and become the first tech company to reach $1 trillion in valuation.

After the acquisition of Skype in 2011, Yammer in 2012, and Nokia in 2014, the $26.2 bn acquisition of LinkedIn adds up to another big undertaking of a company by Microsoft. According to the analyst Michael Markowski’s, Microsoft’s shares are a key core longstanding hold for each portfolio. The undertaking of this business oriented social networking website will be a reason for increase in its PE multiple. Even with having a highest free cash flow yield of the 10 companies, Microsoft is most devalued. This company on the whole has an ability to beat all the companies. Since the dividend yield is 2.5%, the downside for its share price is limited.

The current market value of leading companies such as Apple is $622.6, Google’s parent company Alphabet is $549.7 bn which is followed by Microsoft at $489.3 bn. According to Markowski, currently Microsoft’s free cash flow yield is greater than the rest of the technology companies operating in the market. The company’s shift towards social investing industry is shown with the acquisition of LinkedIn which will be extremely helpful in driving equity crowdfunding.

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Written by Hisham Sarwar

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