A Redmond, Washington analyst thinks that Microsoft’s $26.2 billion acquisition of LinkenIn will push the tech giant to become the first company with a $1 trillion market value, reported GeekWire.
Analyst Michael Markowski writes for Equities.com that Microsoft will reach that threshold before other big companies like Amazon, Google, Facebook and Apple. Microsoft will do it by leveraging LinkedIn to become a leader in social media and the emerging crowdfunding industry.
“Microsoft will do it by leveraging LinkedIn to become a leader in social media and the emerging crowdfunding industry,” the report said.
“A pair of rulings from the US Securities and Exchange Commission this year opened up crowdfunding by letting companies directly advertise to the public” the report said.
“And allowing those who are not accredited investors – those making more than $200,000 a year or with a net worth in excess of $1 million – to participate in more types of investments,” it added.
The market caps of the top tech companies as of Monday morning –
Apple: $622.6 billion
Alphabet: $549.7 billion
Microsoft: $489.3 billion
Amazon: $358.7 billion
Facebook: $337.6 billion
“The public has an insatiable appetite for making small bets and purchasing lottery tickets, etc., that provide the chance to make a big profit,” Markowski wrote. “The millennials will be a good example. Many will want to routinely invest $100 or even less into high-risk ventures that could produce returns of 10X to 100X.”
Microsoft, through LinkedIn, will be able to take advantage of this trend because it has a monopoly on the business social media sphere. Markowski predicts that all the big tech companies will eventually build services to facilitate crowdfunding investments.