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Microsoft to be the first trillion-dollar company through LinkedIn purchase, says analyst

An analyst is predicting that Microsoft's LinkedIn acquisition back in June will help the company be the first to reach a trillion-dollar market value, ahead of Apple and Alphabet.

Michael Markowski, in his recent analysis states that Apple has the highest market value (of $621.32 billion as of December 27), followed by Alphabet ($557 billion), and Microsoft coming in at $491.71 billion. Despite those figures, he is foreseeing that Redmond will soon lead the charge.

Explaining why, he first points out Microsoft's free cash flow yield, which is reportedly the highest of all the contenders. Secondly, the LinkedIn acquisition expands the company's price/earnings (P/E) multiple. Lastly, Markowski sees that Microsoft will play a key part in social investing community (SIC), which will help make online equity crowdfunding ubiquitous.

According to him, the goal will be reached by making LinkedIn a leader when it comes to social media, as well as being a pioneer in the crowdfunding industry. Furthermore, Markowski predicts that crowdfunding will become the next digital innovation, coming after smartphones and apps.

The evolution of the first two major digital innovations enabled the shareholders of Amazon, Google and Facebook to build dynasty wealth from what would be become the world's most valuable public companies. The third digital innovation, the smartphone app enabled Airbnb, Uber and Snapchat to become the world's most valuable private companies. The fourth, online equity crowdfunding provides Microsoft with a significant advantage to become the first company to get to a trillion-dollar market cap.

Capping off his analysis, Markowski predicts that the social media industry will help drive online equity crowdfunding in the future. "The SIC industry is in its infancy," he said. "However, my prediction is that by 2025, it will rank in size and scope right along with the digital search and social media industries."

Source: Equities via International Business Times

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