Tue, Jul 10, 2007 (Musings on AAPL, GOOG, and MSFT)

I was just looking at some financial information for Microsoft (MSFT), Google (GOOG), and Apple (AAPL), and thought the results were interesting:


  MSFT:  $49.56B
  AAPL:  $21.59B
  GOOG:  $12.02B

Net Income:

  MSFT: $13.86B
  GOOG: $3.49B
  AAPL: $2.79B

Profit Margin:

  GOOG: 29%
  MSFT: 28%
  AAPL: 13%

Year over Year Quarterly Revenue Growth:

  GOOG: 63%
  MSFT: 32%
  AAPL: 21%

Year over Year Quarterly Earnings Growth:

  AAPL: 88%
  GOOG: 69%
  MSFT: 66%

Market Cap (#shares x price/share):

  MSFT: $281B
  GOOG: $169B
  AAPL: $114B

There are a ton of observations you could make here, but one that stands out for me is that the Market Cap number shows that people are most optimistic about Google. Their cap is 60% of MSFT even though their net income is only 25% of MSFT (and their revenue is less than 1/5th MSFT). I guess with "the rule of 72" GOOG's revenue will double in a little more than a year, while MSFT will take more than two years to double.

As an Apple shareholder their stock interests me the most. If Apple does sell 10M iPhones at an average of $550 they would rake in another $5.5B yearly. With their existing 21% revenue growth, and a huge assumption that iPhone sales don't come at the expense of iPod sales, if I write this same post a year from now they'll be looking at yearly revenue in excess of $30B, maybe $31B.

All of these numbers come from Yahoo's financial pages. (And no, I didn't look at Yahoo's financials.)