Saturday , April 17 2021

Microsoft is worth $ 1000 billion. And then?

Investments / Markets

This Thursday, April 25th, Microsoft left its hallmark in the world of finance, surpassing the opening of Wall Street, the capital of 1,000 billion markets. The computer giant is the third company that has crossed this threshold, considered by some as a symbolic course. The information quickly wrapped up the Internet, plagued by both experts in the field and strengthened the finances. But basically, a computer group with such a market value, what does it mean?

$ 1,000.7 billion. This is the market value reached, this Thursday, by the giant computer Microsoft, which has literally been reborn from ashes. The company seemed to lag until recently, in the Gulf's shadow (Google, Apple, Facebook, Amazon). $ 1,000.7 billion, a figure suddenly miraculously and insignificantly, precisely, it's unavailable for the common man. However, the information around the world. Why? Is this a purely symbolic course that interests only financial connoisseurs? Or is it an element whose influence goes beyond the corridors of the World Stock Exchange and which predicts the era of corporate monopolies, those of new technologies? Unless it's all this all at once …

For Bruno Colmont, professor of economics at UCL, this figure is not trivial. "1000 billion dollars is 1/100 of global GDP, 2.5 times more than our country, 5% of GDP in the US, so it's gigantic and shows, if necessary, that we are entering a world of monopolies." In the past, the monopoly was interrupted, but these companies have developed up to the moment of a de facto monopoly situation, and that's the case today. " For Paul Joron, this information has a more symbolic value than anything else. The French economist (who is also an anthropologist) does not minimize the company's weight on the world stage, but recalls that it is not uninteresting to compare Microsoft's figures with other capitalizations if we want more to understand the problems arising from the numbers, especially the importance of the context affects such developments in the stock market. But at a time when the words "crisis" and "economy" sometimes seem to be more than one, how can such information be interpreted? Paul Yoron continues with signs: "Market capitalization is not a meaningful factor in itself, it is an independent variable that is worthless if taken alone."

Bruno Collman believes that ICT becomes simply inevitable, this symbolic course can be overcome during events in this area. "Microsoft also shows that it is returning to the scene, although we have said that, as several experts expect this return quite explosively.

"Belgium should consider appointing an ambassador to Gafa"

Should we expect a bad surprise, a negative impact on the average citizen? For Bruno Colmont, the answer may be negative only when it comes to Microsoft, a company that is pretty sound from an ethical point of view and which, according to the economist, is a social project that no one should omit.

What about the socio-political context? Can Microsoft and the giants representing GAFA influence from a political point of view, for example? Our two experts are unanimous: the value of these companies gives weight to some countries, or even more, according to Paul Joron. "This element is a public opinion that denotes, sometimes with a misunderstanding that feeds a certain fear. However, do not consider Microsoft to be a lobby. Microsoft, like any business, has its own lobby, but it should not be considered as such, diplomatic corps. And the more important it is, the more we weigh in the discussions. "Bruno Colmant even believes that these companies sometimes play the role of a colleague of a state. "Belgium should also consider appointing its ambassador to Gafa as it exists in Denmark. We can no longer without these companies, especially because ICTs are an integral part of our lives. A connection needs to be established and the ambassador should allow a transparent exchange, without having to go through the lobby. Idea to dig for the next government? "Why not, that would be a great thing anyway!"

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