Apple vs. Microsoft: who wins for the investor?

James Perkins, Portfolio Manager, Thrasher Funds, and TheStreet.com’s Rob Martorana sit down in a video presentation to decide who wins for the investor, Apple or Microsoft. So little is said about Microsoft that’s positive, that it’s not a fair fight.

Topics discussed:
• Microsoft and MTV’s “URGE” music service vs. Apple’s iTunes Store
• iPod Economy: the vast amount of iPod accessories vs. also-rans’ meager add-ons
• iTunes software’s familiarity with tens of millions of users
• Apple the innovator vs. the followers like Microsoft et al
• Lack of viruses, malware with Mac OS X (a little “security via obscurity” myth here, but we’ll let it slide)
• “It’s tough to say ‘Microsoft and cutting edge’ in the same sentence.”
• Apple’s options backdating irregularities
• Apple’s forthcoming movie distribution network will be “huge.”
• “Waiting for an AAPL pullback may not be smart.”

Watch the video (8:37) here (watching a short ad first is required).

[Thanks to MacDailyNews Reader “MadMac” for the heads up.]

MacDailyNews Note: A four-year chart of AAPL vs. MSFT looks like the Himalayas vs. a parking lot. See it here.

Related articles:
Apple Mac’s 2007 market share climb will dumbfound almost everyone, create mayhem in PC market – September 08, 2006
Apple Computer rallies to 4-month high – September 07, 2006
UBS hikes Apple price target to $92, maintains ‘buy’ rating – September 07, 2006

28 Comments

  1. I find the stock situation very interesting. Given M$’s clout and low stock price, it seems like they have the ability to rocket up, up, and away. But when you look at how their executing on their products, it’s doesn’t seem likely to happen. Apple is poised to grow. And I can’t get out of my mind the comment Steve made to the Cupertino board when they bought the land for the new campus– something like “we’re pretty sure we’re going to be getting even bigger.” I love that!

    The wind is in Apple’s sails right now. I have had such a good time watching Apple’s transition from the dark ages to its renaissance! What a ride.

  2. Why does the chart blow up in your face with MS looking much better and Appl looking much worse if you do a 6 year period? The five year period still looks pretty good, but all the number “look” different when you go to six. Is it the scale or something?

  3. now, now, let’s not be too hasty in beating up Microsoft’s stock. If you look at AAPL vs. MSFT in the 90’s, Microsoft is the clear winner.
    So far, the 00’s is the decade of AAPL.

    And since both are growth stocks, the question is always, “who looks better in the future.” Apple currently is a hands down winner.

  4. – the other Mark:

    ‘And since both are growth stocks, the question is always, “who looks better in the future.” ‘

    A minor quibble:

    M$ a growth stock? Certainly in the ’90’s, but M$ has turned into a badly run utility. The M$ tax generates an enormous cash flow part of which goes into paying dividends, but the rest has been completely squandered.

    But I completely agree with the rest of what you say.

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