Despite an ongoing wave of bank failures that caused turbulence in the financial world, the technology sector managed to hold its ground against the sell-off.
Apple and Microsoft struggled in 2022, with 27.10% and 28.57% declines, respectively. However, both companies have managed to weather recent disruptions in 2023, proving the industry's adaptability. Both Apple and Microsoft are considered solid examples of long-term investments. But which of the two would be considered the superior choice?
Microsoft Corp.
Since its establishment in 1975, Microsoft Corp has been one of the leading tech companies that have expanded into numerous areas.
One of the standout features of this company is that it has a wide range of customers in different fields. Microsoft Corp specializes in areas such as cloud services, cybersecurity, personal computing, and video games.
Consequently, this has helped the company establish a dominant presence in multiple industries, providing it with a competitive edge to attract a larger customer base.
Microsoft Corp is expected to announce its earnings on April 25, 2023. It is estimated to report earnings per share (EPS) of $2.22 for the quarter. This is consistent with the reported EPS for the same quarter in the previous year, which was also $2.22. This indicates that the company maintained its stability in performance.
Furthermore, the P/E ratio was previously 29.56, but in 2023 the ratio is expected to be slightly lower at 29.15. This could show that the market is becoming less optimistic about the future company’s earnings potential growth.
Future Plans
Microsoft Corp is highly invested in artificial intelligence (AI) and its applications in enhancing productivity. It recently provided insights towards integrating AI into its well-known platforms such as Outlook, PowerPoint, Excel, and Word, revolutionizing daily work routines. This tactical decision has the potential to pave the way for a promising future.
Apple Inc.
In the 2000s, Apple Inc.’s accomplishments were showcased by the launch of the iconic iPhone and iPad, both of which have captured the hearts and wallets of consumers. This has secured their position as the largest company in the world by market cap, with a staggering size of $2.5 trillion.
Since then, Apple Inc has maintained its reputation as a leading company, enjoying consistent demand for its products.
On 27th of April, Apple Inc is set to release its earnings. Based on 12 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.44. This is a decline from the reported EPS of $1.52 during the same quarter of last year, indicating that the company may not have performed as well as expected during the quarter.
Moreover, the P/E ratio shows a rise from 25.76 in 2022 to a forecasted 26.06 in 2023. This indicates that the market’s sentiment towards Apple has remained positive and investors are still willing to pay a premium price for the company’s stock.
Future Plans
This year, Apple has intentions to enter a new market. It is expected to launch an augmented reality (AR) headset in June. This strategic move could potentially significantly enhance the company’s success and lead to additional success in the future.
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