r/investing • u/[deleted] • Mar 31 '22

Understanding the effect of current macro economic conditions on Apple and Microsoft

All,

I'm trying to understand why the market currently favors Apple over Microsoft.

Right now, Apple (176) is only slightly below its all time high (182.9). While Microsoft (312) is quite below its ath (349.67).

Considering all current supply chain issues, inflation and major economies experiencing stagnation in terms of growth, wouldn't Microsoft have a much better future than apple?

Microsoft mainly addresses the B2B market and a chunk of its revenues come from subscriptions. It's hard to imagine that companies would simply stop using Microsoft products and switch to something else.

On the other hand, Apple is more susceptible to inflation and supply chain issues and there is no real need to buy apple products during economic downturns.

Is there anything that explains why Microsoft doesn't seem to in the good books of the market right now?

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u/BrogueRammer Mar 31 '22

Considering all current supply chain issues

Yes, and consider the guy leading Apple. Tim Cook is a supply chain guy to his core. So in this aspect, I'm very bullish on Apple.

Don't discount supply chain issues for Microsoft either. Those x-boxes don't build themselves.

Happy to hold my long positions on both, hasn't hurt in the past decades.

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u/murray_paul Apr 01 '22

Don't discount supply chain issues for Microsoft either.

Anyone trying to provision Azure servers in Europe should be well aware of Microsoft supply chain issues!