Hedge fund manager Cody Willard: ‘Apple could become more valuable than Microsoft sometime in 2007’

Cody Willard is the manager of a hedge fund and the author of the Telecom Connection, an investment newsletter. He is also a headliner on TheStreet.com, writes for Razor Magazine, VON Magazine and the Financial Times, is a frequent featured guest on CNBC and has been quoted in many publications, including the New York Post and the Hollywood Reporter.

Willard writes for TheStreet.com, “with Apple having blown by Oracle in market cap already, I wonder how much longer before it catches Cisco. Then Intel. Then Microsoft? Let me go ahead and be the one to throw it out there first: I wouldn’t be shocked to see Apple more valuable than Microsoft sometime in 2007. What a mind-blowing thing to think to ponder.”

“Apple’s market cap has gone from $6 billion to $60 billion in the past two and a half years. Can it keep running? If the company delivers the growth it looks like it will: heck yes it can keep running. I’m sticking with it, although I have trimmed the exposure in the past few weeks, as I’ve noted on the site.”

Full article (subscription required) here.

[Thanks to MacDailyNews reader “jalex” for the heads up.]

MacDailyNews Note: Apple’s market value is currently $59,888,758,930, thanks to recent profit-taking. Dell’s, for one example we’re keeping a very close eye on in relation to Apple for obvious reasons, is currently $78,182,273,298. Microsoft’s current market value stands at $287,850,410,220.

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  1. Microsoft is being attacked on all fronts, so Apple is only one of their worries. Google, Oracle and Sony among others are also hot after them. Microsoft literally has too many irons in the fire. Bill Gates may end up becoming a latter day Julius Ceasar if this continues for a few more years. As the earlier post said, all empires and dictators no matter how powerful end up falling eventually…

  2. I hate to be a nay-sayer, but Apple will never surpass Microsoft unless they license OSX to run on any PC meeting certain hardware requirements.

    That’s the long and the short of it…

  3. “all empires and dictators no matter how powerful end up falling eventually…”

    As I’ve always said – in the end China will win…

    You heard it here first, on MDN ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. Not even the most ardent Apple fan would have dared make such a suggestion 5 years ago, and now we have a fund manager letting the very words roll off his lips.

    Glad I got my AAPL when ti was way down.

  5. that’s pretty funny.. just the Dell numbers are amazing.. surpassing dell in the next couple months? Wow…

    I dont know about MS tho.. it seems pretty lofty to even suggest..

  6. If Apple stock keeps double/ triple every year…it would be 2007… oh, not for MS!!!
    Well MS still only earns $$ on OS & Office – all others lose $$$, LOTS of it… WinCE, XBox, MSN, MS Music Stores, everything is a huge drain…. Monopoly Office/OS fees are the ONLY income. ( and we see Europe, India, China, lots of starving people can’t afford a $100+ OS – or Office even one per village!

    BUT, Apple earned a LOT of cash this year. $250 Million is x 4 = 1B – but Apple went from 5.7 to 8.3B Cash in 1 year…. What did they invest in??? Tiger -OK, and??

    Apple, runs like a few small companies. Retail earns a profit selling 3rd party stuff, paying staff, leases, and expanding ( Often companies “Bet” by losing $$ and improved distribution – Gateway closed all stores & Bought by eMachines during this.)

    Applications all earn a profit. FCP finances iMovie, QT pays itself on PRO & licensing (MS doesn’t earn on MS media !)

    iTunes music store is 2nd only to Amazon in sales! 2nd Largest ecommerce web site on earth!! ( Which Apple operates at break even – or “Slight” profit – but zero losses… )

    It goes against everything Business Schools say…. Apple can invent, and earn a profit, while taking over industries…. see Media PC market swallowed by V Pod in 1 day! MS is trying…too many people… 45,000 engineers on Vista vs. 2500 on Mac OS X ( PPC & Intel every version – recouped R&D on retail sales of OS)

    Is MS lame because they finally paid a few fines for illegally exploiting their monopoly market? Sherman antitrust act says they must give back ALL ILLGOTTEN GAINS ( since without lying, cheating, stealing, no profits at all ) They have never “Done” anything, and lying to IBM to get 4 Billion dollars a year to make DOS ( Not even owned by MS ) then paying to rent each copy – since it’s a hobby market.. IBM was bigger than MS too…

    I don’t think the OS war was ever done while Steve was at Apple, MS was a spreadsheet developer…. Skully accidentally signed away the right for MS to copy Mac OS – and ran it to the dirt….

    IBM paid all that R & D so they could catch Apple…when Steve was there…It dominated ( except where Steve doesn’t get to implement -fully automated Assembly plant idea – actually DID work, years after…listen to the guy!!)

    If Apple stays fiscally responsible, it will begin piling on cash, every part is profitable, everyone loses $$ on Music stores…except Apple, MS Pays years of R&D never ships in OS < Like Apple B 4 steve >

    Steve lost “his” company by a boardroom back deal… So Pixar he keeps over 50% so no one can….
    Steve wants the world to be a better place, Bill G only wants to own it, whatever it is, he’d invest in Apple to do it…. Who runs MS now though? 999 Managers…

    If Apple Hardware competes on price with DELL, feature for feature, price to your home – Apple is cheaper – you can run your old Windows, Linux, and pretty = Mac OS X is free – and less license fees a LOT less – iPod shows how THAT works out….

    After OS X runs on x86, fastest, best priced, sexy, hardware….why not use Applr PC’s (Less ugly!) Then, if say….. 25% of them buy as WIndows hardware have a few security issues….try out X?

    Trojan HORSE Mini*

    *Makers of iPod

  7. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    I’ve been a Mac user since 1989. let me tell you, I loved OS 6-9 but they are drek compared to what you can do with OSX. I am happy my Mini came without “Classic”.

    I have also been an unwilling Windows user since 1995. Let me tell you, XP is way more stable than even Win 2000. Win2000 could stay up about a day; you can go a week on XP, though it still is sluggish and multitasks poorly. But let me tell you another thing: while MSFT HAS improved the beneath-the-hodd aspects of Windows (though they get an “F” for failing to transition to UNIX when they still could have, a few years ago), the user experience is JUST as bad in XP as 95. The Window dressing is different, but the moment you try to do anything more complex than sending an E-mail, you realize that even simple things like cutting and pasting between applications is pretty hit-and-miss.

    I am NOT happy about Apple moving to pokey X86 chips, but it makes it “safe” to try Mac for people. They can buy a Mac and if they really don’t like it (hahhh!), they could in principal wipe the drive and install XP or “Vista”. 2006 is going to be a HUGE year for AAPL.

  8. mike wrote:
    “I dont know about MS tho.. it seems pretty lofty to even suggest..”

    There were times when General Motors and Ma Bell (AT&T) were also considered too big to be eclipsed.

    What’s amazing is how many of MS’s problems are self-made. Why aren’t their products (esp. Windows) secure? Why did they over-extend into different markets? Why do so many of their crucial products still carry bloated legacy weight?

    MS is killing themselves. Apple is building a better product line, and has conveniently placed it to take the spoils.

  9. Why did the article omit Google? They’re MS’s biggest threat. They’re worth about $140million, and I expect them to catch MS in market cap by the end of next year. Apple will be doing well to catch Dell.

    As for Switzerland, you can’t compare marketcap to GNP. It’s not the same thing.

  10. AMPAR : Your remark made look up an old cd I have with the band TIMBUK 3 – and now I´m singing ” The future´s so bright, I gotta wear shades ! ” Thank ! = )

  11. Comparing Microsoft’s market cap to Switzerland’s GNP is like comparing Windows to Swiss Cheese. They both have holes, and the raw material for both comes from the after end of the cow.

  12. Yes, Geir:
    “Things are going great, and they’re only getting better
    I’m doing all right, getting good grades
    The future’s so bright, I gotta wear shades.”

    Greetings from Ampar. (Just wanted to funk with your mind.)

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