What's Next for Microsoft and Apple Stocks?

TL;DR

Microsoft and Apple stocks could benefit as both companies add subscription-based AI offerings and expand into new technology markets. The discussion estimates that converting 5% of Microsoft Office 365’s cited 400 million users to a $30 monthly subscription would generate $600 million per month. Microsoft may eventually surpass Apple in market cap if Apple stumbles and Microsoft strengthens its consumer position; read on for the assumptions behind that outlook.

Transcript

this chat gbt situation well how will it affect Microsoft and Apple stock specifically being that Microsoft is um the 30 a month subscription and apple is announcing they you know they're coming out with their own so how will it impact their stock to the Moon even if they only get four million people which they're probably getting more that's a 120... Read More

Key Insights

• 🐕‍🦺 Microsoft and Apple's subscription services have the potential to generate significant monthly revenue, bolstering their stock values.
• 💨 Both companies are finding innovative ways to dominate the tech industry, with Microsoft excelling in the enterprise market and Apple focusing on consumer loyalty and innovation.
• 🥵 The competition between Microsoft and Apple is heating up, with Microsoft having the potential to surpass Apple in market cap if it can break into the consumer market.
• 🧑‍💻 Investors and individuals who fail to invest in tech companies like Microsoft and Apple may be left behind, as these companies continue to control the industry.
• 😮 Inflation and rising car payments are affecting the economy, and it is essential to invest wisely for the long term.
• 💨 Apple needs to innovate faster and differentiate its products to maintain sales growth and keep up with competitors like Samsung.
• 👶 Both Microsoft and Apple are exploring new territories and customer bases to expand their market share.

Questions & Answers

Q: What's next for Microsoft and Apple stocks?

The speakers expect Microsoft’s rise to continue and describe its outlook as promising, driven partly by a proposed $30-per-month subscription. They also view Apple as a dominant company that continually adapts, although they warn that it must innovate faster as the iPhone market slows.

Q: How could Microsoft's $30 monthly subscription affect its revenue?

Using the cited base of 400 million Office 365 users, a 5% conversion rate would equal 20 million subscribers. At $30 per month, that would generate $600 million monthly from existing customers.

Q: How much could Microsoft earn if 10% of Office 365 users subscribe?

The discussion estimates that a 10% conversion rate could produce about $1.2 billion to $1.3 billion per month. That estimate covers Microsoft Office customers alone and excludes businesses that might newly adopt the product.

Q: Could Microsoft surpass Apple in market cap within three to five years?

The speaker says it is possible if Apple has a couple of setbacks and its VR project does not perform well. At the time discussed, Apple was valued at over $3 trillion and Microsoft at $2.6 trillion.

Q: What could prevent Apple from maintaining its lead over Microsoft?

The speakers identify a dramatically slowing iPhone market and insufficient product innovation as risks. They argue that Apple needs meaningful advances beyond camera improvements and could lose ground if its VR project struggles.

Q: Why is Microsoft described as strong in the enterprise market?

Microsoft has an established base of Office 365 users, cited as 400 million, and its products are already familiar to businesses. The discussion also says Microsoft is becoming more beloved among enterprise customers, giving it a strong audience for additional subscriptions.

Q: How is Apple responding to AI and emerging technology markets?

The discussion says Apple formed a team to develop a large language model after AI gained momentum. It also points to Apple’s hardware work for the metaverse sector and its quieter efforts involving its wallet and blockchain technology.

Q: Why do the speakers believe Microsoft and Apple can remain dominant?

They argue that both companies repeatedly adapt rather than relying only on established products such as the iPhone, iPad, and Office. Apple moves into areas including AI and metaverse hardware, while Microsoft expands its subscription model at enterprise scale.

Summary & Key Takeaways

• Microsoft and Apple's subscription services, such as Office 365 and Apple's upcoming subscription, are projected to generate significant revenue, with potential monthly incomes in the hundreds of millions or even billions of dollars.

• Both companies are finding innovative ways to expand and dominate the tech industry, with Microsoft focusing on enterprise solutions and Apple continuously pushing for new hardware and software developments.

• The competition between Microsoft and Apple is intensifying, with Microsoft leading in the enterprise sector and Apple a favorite among consumers. However, Microsoft has the potential to surpass Apple in market cap if it can make a breakthrough in the consumer market.