Apple, Microsoft and Alphabet (Google) each reported spectacular earnings this week. These companies represent three of my seven taGMan portfolio companies that will thrive in a world of electric vehicles and autonomous driving business solutions (Tesla, Amazon, Nvidia, General Motors are the other four companies of taGMAn. Tesla reported very good earnings this week as well). What is interesting about the three A-M-G companies (Apple, Microsoft, Google) is that very little, if any, of their financial performance is connected to revenue from transportation-as-a-service (TaaS) businesses each company is developing for a future $11 billion to $12 trillion global market.
Apple
Fiscal 2021 Quarter Ending June 30, 2021
Total revenue increased 36%, to $81.4 billion
iPhone, Services, Mac, and iPad revenues increased 50%, 33%, 16%, and 12% respectively.
Gross margin increased to 43% from 42%.
Microsoft
Fiscal 2021 Quarter Ending June 30, 2021
Revenue rose 21% year over year in the quarter to $46.15 billion.
Net income increased by 47%.
The company’s revenue from their Intelligent Cloud, Productivity and Business, and Personal Computing businesses increased 30%, 25%, and 9% respectively.
2021 Quarter Ending June 30, 2021
Total revenues increased 62% to $61.9 billion.
Advertising revenue climbed 69% to $50.4 billion.
Revenue for YouTube grew to $7 billion up 83% from last year, with YouTube access via connected TV being over 120 million people per month.
With very little revenue connected to TaaS businesses today, imagine the incremental valuation the A-M-G companies will garner as they continue to develop and launch autonomous business solutions for the future $11 trillion global TaaS market.
Apple, will introduction of an electric, autonomous vehicle establishing a new form of hardware sales, as well as new service revenue connected to mobility solutions. (Company valuation today: $2.4 trillion)
Microsoft will continue growing its partnerships with automakers and autonomous driving companies by providing cloud computing technology that commercialize self-driving big data requirements. (Company valuation today: $2 trillion)
Google is continuing to realize its long-term quest to develop and commercialize a self-driving taxi service that began as the Google Self Driving Car Project in 2008 and is now Waymo, a subsidiary of the parent company Alphabet. (Company valuation today: $1.9 trillion)
A-M-G are all valued at essentially $2 trillion today. How much will their ability to generate massive revenue from new TaaS businesses increase their valuation? It’s going to be massive growth.
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TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.