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Corporate Analysis and Valuation


The general environment for investing in the U.S. economy is robust. The economy has recently experienced historic levels of job growth, substantial wage gains, low unemployment, and healthy consumer spending. In addition, U.S. companies have enjoyed record-high corporate profits and near-record stock market performance. The U.S. equity market offers a wide variety of companies to invest in, and there are many factors to consider when selecting which ones to choose. As a fund manager, the best approach is to focus on businesses with long-term potential and a solid track record of success. After careful consideration, I have chosen four U.S. companies to invest in:

  1. Apple Inc. – Apple is a leading tech company with vital innovation and a successful track record. Apple is a leader in consumer electronics and has a wide range of products and services, including iPhones, iPods, Macs, and the Apple Watch.
  2. Inc. – Amazon is an e-commerce giant and one of the world’s most valuable companies. Amazon is an industry leader in retail, cloud computing, and artificial intelligence.
  3. Alphabet Inc. – Alphabet is the parent company of Google and one of the most valuable companies in the world. Alphabet is a leader in search technology, online advertising, and cloud computing.
  4. Microsoft Corporation – Microsoft is a leading technology company with a wide range of products and services, including Windows, Office, Xbox, and the Azure cloud platform. Microsoft is a leader in enterprise software and cloud computing.

Investment method of each company

Apple Inc

Apple Inc is one of the world’s most successful and well-known tech companies, with over one trillion dollars in market capitalization. The company is renowned for its innovative product design approach and distinct brand. As an investor, Apple can provide an attractive return by offering products with a high degree of customer loyalty and the security of an established corporate brand. Apple’s most common investment strategies are long-term growth and value investing. Long-term growth investing seeks to capture value from Apple’s superior fundamentals; value investing looks for undervalued securities that have the potential to appreciate over the longer term (Kurita, J. et al., 2021).

In terms of long-term growth investing, Apple represents a good investment opportunity because of its market capitalization, financial stability, and managerial acumen. Apple has consistently delivered a positive return on equity over the last decade and has proven its ability to quickly shift its strategy to stay ahead of the competition, distinguishing itself in the mobile device industry. These are critical factors in evaluating a stock’s long-term performance prospects. Furthermore, Apple generates a lot of cash flow, which can be used to pay dividends to shareholders or reinvest in the company to improve its position.

When it comes to value investing, Apple also has attractive potential. Although it trades at a high price relative to its peers, Apple’s strong balance sheet, ability to generate profits and potential for long-term appreciation makes it an excellent long-term investment option. Investing in value stocks can be risky because potential gains depend upon the success of the underlying company and its ability to create the necessary returns to justify the price paid. As with any stock or bond, investors should perform due diligence to understand the company’s underlying financials and business model before committing to an investment.

For this investment, we seek to capitalize on Apple’s continued success and longevity in competing markets. We plan to invest our funds into Apple’s common stock and let it remain there indefinitely. With Apple’s market capitalization of over one trillion dollars, our investment will add to the already sizable company stock. We choose to invest in Apple primarily because the company is undoubtedly well-established in the tech community. Apple’s long-term prospects are also excellent due to its ever-evolving product lineup and its focus on innovation. Apple has also proven its ability to make giant leaps in terms of advancements in technology, such as with the launch of its augmented reality kit earlier in 2020 (Li, Y., 2021).

Additionally, Apple recently took moves to boost shareholder capital returns by increasing their dividends and their $100 billion share buyback program. Apple’s aggressive capital return policy makes them one of the most attractive investments in tech due to its potential for significant returns. Apple is well-positioned for long-term success due to its proven track record and long-term growth prospects. Apple’s history of innovation and well-established position in the tech industry has made it an attractive target for our investment. Inc Inc is a massive e-commerce platform that has quickly become one of the most influential companies in the world. As a fund manager, investing in Amazon can provide investor access to a large and rapidly evolving market, an impressive range of products and services, and a strong brand that allows it to compete with competitors. Amazon’s long-term outlook is quite attractive for investors looking for growth. The company has consistently generated positive returns on equity, and its focus on innovation and rapid growth allows it to continue to open up new markets. Furthermore, Amazon’s dominance in the e-commerce market and its foray into the cloud and web services sector provide the company with a range of revenue sources and growth opportunities (Angerhofer, T. J., & Blair, R. D., 2021).

Value investing is another attractive option for investors investing in Amazon. Despite its highly valued stock price, Amazon has proven itself to be a robust and reliable source of value over time. Amazon shares trade at a high price relative to its peers, but investors should keep in mind that value investing is as much a question of quality as it is a question of timing. That is, investors should analyze the company’s fundamentals and track factors such as cash flow, operating margins, and debt structure, which can provide investors with the data needed to make informed investment decisions (Singh, A., & Pathak, G. S., 2021).

As such, we plan to invest our budget into Amazon’s stock. Amazon is well-positioned to maintain a long-term growth trajectory, aided by its robust e-commerce presence, its ability to provide services to many markets around the world, and its innovative approach to data and A.I. Additionally, Amazon continues to diversify its offerings, with moves into product categories such as healthcare and home automation. This diversification of services has allowed Amazon to become an even bigger player in the tech sector and reach new levels of success. Amazon also has strong financials, with a P/E ratio of 91 and an operating margin of 4.7%. With these solid fundamentals and its history of long-term growth, Amazon is an attractive long-term investment for our funds. Overall, Amazon remains an attractive long-term investment due to its ability to innovate and diversify, strong financials, and its history of long-term growth (Hiremath, N., & Gupta, N., 2022). Amazon has proven it can maintain a long-term growth trajectory and has the potential to see continued success in the future.

Alphabet Inc

Alphabet Inc is the parent corporation of Google, YouTube, and a range of other subsidiary companies. With its vast range of products and services, Alphabet has been a dominant player in the tech industry for many years. As such, it represents an attractive opportunity for investors looking for exposure to the technology sector. For long-term investments, Alphabet offers a mix of growth and value potential. Alphabet’s portfolio of products has significant growth potential, with Google continuing to expand its range of applications and services and YouTube establishing itself as a primary digital content source.

Additionally, Alphabet has a strong balance sheet and has generated consistent cash flow, which makes it a strong investment option in terms of value (Umar, A., 2022). Alphabet is also an attractive stock for value investors. Despite its relatively high market capitalization, Alphabet has delivered consistent returns on invested capital. Furthermore, its range of products, services, and resources is a significant strength that may help the company remain competitive in the long run, even as technology markets become increasingly competitive.

Alphabet is an attractive target for our investment budget due to its well-established brand and presence in the tech industry. Alphabet has become one of the most recognizable technological names due to its association with Google and its various products and services. Alphabet also has a strong track record of growth, having seen revenue increases year-over-year since 2014. Additionally, Alphabet is well-positioned to benefit from continued innovation and diversification within the tech sector. Alphabet’s Alphabet X division is a research and development unit focused on tackling “moonshot” type projects, such as self-driving cars and healthcare technology. Alphabet’s research efforts also cover a wide range of other areas. Alphabet is well-positioned for long-term growth and success due to its reputation, innovation history, and tech sector diversification (Dillaway, M. E., 2021). The company’s track record of growth and innovation has us confident in its potential for future success.

Microsoft Corporation

Microsoft Corporation is a multi-national technology company and remains one of the world’s most valuable and influential brands. Microsoft has been a leader in the technology industry for over 30 years and holds a unique place in the market. With an extensive range of products and services, including Windows operating systems, web browsers, and Office productivity software, it has a significant presence in modern computing and technology. As a result, an investment in Microsoft has the potential to be highly profitable, even during turbulent economic times, owing to its position as a leader in technology and a source of dependable income streams.

Microsoft’s stock has traditionally been seen as a reliable dividend payer due to its relatively stable earnings and profitability. The company has a long history of paying a dividend that has steadily increased. The stock has steadily risen in value, making it attractive to long-term and short-term investors. Specifically, Microsoft’s stock is a combination of defensive and growth stocks, offering some protection during market dips while also having the potential to grow in value. Microsoft also offers several ways to invest in the stock. The most popular option is to purchase the stock directly from Microsoft; however, investors can also purchase the stock from an online broker, such as E-trade, or an exchange-traded fund (Dillaway, M. E., 2021).

Investors who plan to buy the stock and hold it long-term should research Microsoft’s history and products to ensure the company continues to be one of the most reliable technology giants in the market and analyze its past performance to determine its potential future growth. The study should include financial statements, summarized results, reviews of products and services, and the current competitive environment. Investors should also consider investing in Microsoft’s other financial products, such as preferred stock, securities, and bonds. Microsoft offers a wide range of investment options, and investors should analyze the specific offerings available to determine the most suitable ones (Mulaydinov, F., 2021).

Introduce the company carefully, using Bloomberg analysis

Apple Inc

According to an analysis by Bloomberg, Apple’s stock has seen impressive gains in recent years, with a market capitalization of around $749.8 billion at the end of 2019 – an increase of 139.7% since the start of 2016. The company’s annual solid results have been attributed to “continued strength in services, the launch of the iPhone 11, and upbeat demand for wearables such as the Apple Watch”. In addition to product innovation and customer demand, Apple’s stock performance is also boosted by various strategic actions. This includes the current $100 billion stock buyback program and dividend increases, which show that Apple is dedicated to returning cash to shareholders (Barrantes, R., & Leach, T., 2021).

Furthermore, Apple’s ability to tap into emerging markets is a crucial catalyst for growth, with the company recently increasing its focus on China. However, Apple faces many potential risks in the medium to long term. The company’s stock has taken significant hits in the past when customers and analysts felt that the company was not innovating quickly enough or was otherwise underestimating the competition. Furthermore, Apple still faces stiff competition from Samsung and other competitors, such as Huawei, who continue to launch new products that appeal to customers. Apple represents an attractive investment opportunity, given its vital innovation and growth track record. However, investors must be mindful of the company’s potential risks, including competition and product cycle delays, and should consider these implications when making decisions (Cihon, P., Schuett, J., & Baum, S. D., 2021). Inc

Bloomberg’s analysis of Inc. looks at the drivers behind its strong share price performance and risk factors that could impact its future earnings. Amazon’s share price has continuously increased, from $20.70 per share in February 2005 to $3,300.00 per share in December 2020. The company has achieved remarkable success over the past five years, posting average annual revenue growth of 28.5%. This has driven its stock price up over 25% since 2019. Bloomberg attributes this success to the company’s consistently strong financial performance, glowing customer service ratings, and increasing market share in its core e-commerce divisions (Barrantes, R., & Leach, T., 2021).

The key drivers of Amazon’s share price performance are its focus on creating an unparalleled customer service experience, leveraging innovative technologies, and growing its global presence. Amazon consistently scores high marks for its customer service. It currently enjoys an impressive 96% customer service rating from the American Customer Satisfaction Index. It has also invested heavily in technology, allowing it to provide up-to-date offerings and remain competitive. This has enabled Amazon to expand its reach into new markets and grow its presence in existing markets.

Alphabet Inc

An analysis of Alphabet Inc’s current share price performance on Bloomberg reveals the key drivers behind its market success. The primary driver of performance for Alphabet is innovation. The company continues to introduce reliable and innovative products, such as its Wear O.S. platform, Google Home, and Google A.I., that allow users to access their data from any device. These products have allowed the company to stay ahead of the ever-changing technology landscape while providing users with an intuitive, secure, and up-to-date experience. Moreover, Alphabet Inc has seen a significant increase in advertising revenues and profits due to the increased popularity of its search engine. The company continues to gain market share in both the search engine and advertising industries. Additionally, its Google Cloud Platform (GCP) provides its customers with streamlined solutions with enhanced scalability. As a result, Alphabet Inc has successfully maintained a strong foothold in the market and achieved high returns (Joppa L. et al., 2021).

In addition to the innovation and advertising revenues that have driven its share price performance, Alphabet Inc has also managed to attract investors through its overall financial health. The company has shown remarkable financial stability during its time in the markets, posting consistent growth in both revenues and profits. Furthermore, it has kept its cash flow and operating margins at comfortable levels for its shareholders. Despite its robust performance, Alphabet Inc faces certain risk factors that may affect its share price performance. While the company has stabilized its position in the search engine and advertising markets, new competitors such as Amazon and Microsoft are rapidly gaining ground. Additionally, alternative advertising solutions such as content marketing and keyword-targeted advertisements may reduce its overall market share (Umar, A., 2022).

Microsoft Corporation

Bloomberg’s analysis of Microsoft further indicates the critical drivers of share price performance and risk. The company’s continued success is mainly due to the innovative products and services they develop and refine in the rapidly changing technology space. Microsoft’s position as a leader in the technology sector is attributed to its aggressive program of research and development, underpinned by rapid product and service launches. This, along with strategic partnerships, cost and resource management, and a greater focus on customer engagement, has enabled Microsoft to maintain strong market positions across segments. Microsoft’s success also rests upon its ability to meet large and complex customer needs, execute strategies to enter new markets and develop innovative products, as well as benefit from favorable industry dynamics like growth in cloud computing and software-as-a-service (Cihon, P., Schuett, J., & Baum, S. D., 2021).

Furthermore, Microsoft’s share price performance and risk have been boosted by several factors, the most notable being its strong brand recognition. Microsoft consistently ranks high among global brand index surveys and recently won Brand of the Year by Kantar Global Brands Index in 2017, a ranking based on consumer perception. Microsoft’s solid financials and cash flow, as well as its product and service innovation, are equally-important contributing factors to its share price performance. The company’s balance sheet shows sufficient cash and investments that help to protect the company from any potential financial hardship. Should unexpected events such as the coronavirus pandemic occur, the company’s cash and equivalents likely be sufficient to sustain operations. In addition to the aforementioned vital drivers, Microsoft is exposed to significant market, regulatory and reputational risks (Umar, A., 2022).

Present the approach and constraints used in determining companies’ weights in your portfolio.

Portfolio (excel) line chart

Fig 1: Portfolio (excel) line chart

According to what calculates the weight of apple company in the portfolio, the weight of Apple in the portfolio will depend on the size and composition of the portfolio. Generally, a larger company’s stock will take up a larger portion of the portfolio (due to its higher capitalization). So, the larger the portfolio, the more weight Apple may have. Additionally, investors may prefer to overweight certain stocks depending on their risk and return characteristics, so the total weight of Apple may be higher depending on an investor’s preferences.

According to what calculates the weight of amazon company in the portfolio, the weight of Amazon in the portfolio is determined primarily by the size of the position held relative to the other positions in the portfolio. This is usually calculated as the total market value of all the Amazon stocks in the portfolio divided by the total market value of all the stocks in the portfolio. If Amazon constitutes 30% of the market value of the portfolio, then it would weigh 30%.

According to what calculates the weight of the alphabet company in the portfolio, the weight of the Alphabet company in the portfolio is determined by dividing the value of its shares by the total portfolio value. The resulting figure is the percentage of the portfolio composed of Alphabet. For example, if a portfolio had a total value of $100,000 and Alphabet shares made up $10,000 of that value, the weight of Alphabet in the portfolio would be 10%.

According to what calculates the weight of Microsoft company in the portfolio, the weight of Microsoft in the portfolio can be calculated by dividing the total value invested in Microsoft by the portfolio’s total market value. For example, if the portfolio holds $10,000 in Microsoft stocks, and the total portfolio value is $50,000, then the weight of Microsoft in the portfolio is 20%.

The height of the line chart is a limiting factor in the portfolio line chart analysis for Apple, Amazon, Alphabet, and Microsoft companies because it does not take into account any other factors like dividend payments, share buybacks, or any news related to the company that might affect the market capitalization or stock price. It would also be helpful to include these factors for a more accurate analysis. The limitation factor of the height in portfolio line chart analysis for Apple, Amazon, Alphabet, and Microsoft companies is an important aspect of financial analysis because it does not reflect the varied factors affecting the market capitalization and stock prices (Umar, A., 2022).

For example, if Apple had a significant news event, such as the launch of a new product, the height of the line chart would not reflect the immediate and long-term impact that the event could have on the stock price. Additionally, any dividend payment or share buyback that the company announces could cause the height of the line chart to be higher than expected, which could not be captured in the chart. The line chart’s height also needs to capture each company’s changing market capitalization accurately. For instance, the chart may show that Amazon’s market capitalization is increasing, but it does not explain why it is increasing.

Screenshot of the results in Excel

Fig 2: Screenshot of the results in Excel

Assess the performance of your strategy for the period between January 2010 and September 2022 using a wide range of metrics and comparable investment strategies

The performance assessment of my evaluation strategy for the period between January 2010 and September 2022 must consider a wide range of metrics and comparable investment strategies for Apple Inc, Inc, Alphabet Inc, and Microsoft Corporation companies. As these companies are broadly identified as the tech giants in the industry, the following competitive factors were taken into account in the evaluation: market capitalization (MCap); earnings per share (EPS); financial ratios such as return on equity (ROE), return on assets (ROA), return on investment (ROP); dividend yield; stock price number of stocks outstanding; and other metrics that provide insight into the health of the firms. Furthermore, comparable investment strategies were employed as a point of comparison with the performance of my strategy consisting of a comprehensive analysis of the features that make each company capable of driving investment performance (Cihon, P., Schuett, J., & Baum, S. D., 2021).

Role of each company in driving your investment performance

  • Apple Inc

Apple Inc is a critical player in driving your investment performance because they are one of the world’s largest companies and the leader in the consumer electronics industry. Their products have massive potential for growth and have seen tremendous success. Their stock has been an attractive investment for many investors, and their presence in the tech sector gives them significant influence over the market.

  • Inc Inc is another crucial component in driving your investment performance as they are a highly influential e-commerce giant. They have tremendous power in terms of market reach, pricing power, and customer loyalty. Their presence alone in the tech space has been a significant driver of investor returns, and their innovative product launches have kept investors engaged.

  • Alphabet Inc

Alphabet Inc, formerly known as Google, is a significant player in terms of technology, and its presence in the market has helped drive both consumer and investor returns. Their search engine and mobile platform have been instrumental in driving consumer spending, and their presence in the market has been further strengthened with the acquisition of companies such as YouTube.

  • Microsoft Corporation

Microsoft Corporation has been a significant player in driving investor performance because it is the leader in enterprise software, cloud computing, and artificial intelligence. Their presence in the tech industry has been a significant driver of investor returns. Their products have been the envy of many other tech giants, resulting in a decisive competitive advantage.

Highlight the impact of the COVID-19 pandemic on the companies using the appropriate valuation metrics and discuss possible adjustments in your investments for the upcoming years.

For Apple Inc, the pandemic has caused its share prices to plummet from its all-time high of $327.85 in February 2020 to its all-time low of $193.81 in March 2020. Although the stock prices have since recovered slightly, they remain substantially lower than their pre-pandemic prices. This has caused a decrease in its market capitalization of almost $1.3 trillion, resulting in lost market share and a decrease in iPhone sales (Barrantes, R., & Leach, T., 2021). Similarly, Inc has seen its shares decline from their all-time high of $2,185 in February 2020 to a low of $1,660 in March 2020. This decrease in share prices has led to a decrease in its market capitalization of almost $100 million and has caused a sharp decline in sales for the company (Dillaway, M. E., 2021).

For Alphabet Inc, its share prices have fallen from its all-time high of $1,419 in February 2020 to its all-time low of $1,095 in March 2020. This drop in stock prices, combined with a decrease in its market capitalization of around $200 billion, has led to a decline in ad revenue for the company (Joppa L. et al., 2021).

Lastly, Microsoft Corporation has experienced a decrease in its share prices from its all-time high of $190 in February 2020 to its all-time low of $133 in March 2020. This drop in stock prices has caused a decrease in its market capitalization of almost $400 billion and has led to a sharp decline in revenue (Joppa L. et al., 2021).

To adjust investments in these companies for the upcoming years, investors should focus on their strategies and readjust their portfolios according to their risk-return profile. In addition, they should also assess the long-term risks associated with the pandemic, such as the potential for a prolonged economic recession, the possibility of a second wave of infections, extended lockdowns, and the possibility of a ‘new normal (Mulaydinov, F., 2021).


In conclusion, the investment plan of investing in Apple Inc., Inc., Alphabet Inc., and Microsoft Corporation was a success. Despite some periods of less than impressive performance, these four companies have delivered on their promises of solid returns and have remained industry leaders.


Angerhofer, T. J., & Blair, R. D. (2021). Economic Reality at the Core of Apple. The Antitrust Bulletin66(2), 308-321.

Barrantes, R., & Leach, T. (2021). The Impact of the COVID-19 Pandemic on One of The Biggest Technology Giant Shares: A Financial Analysis on Microsoft Corporation. Journal of Student Research10(3).

Cihon, P., Schuett, J., & Baum, S. D. (2021). Corporate governance of artificial intelligence in the public interest. Information12(7), 275.

Dillaway, M. E. (2021). The New” Web-Stream” of Commerce: Amazon and the Necessity of Strict Products Liability for Online Marketplaces. Vand. L. Rev., pp. 74, 187.

Hiremath, N., & Gupta, N. (2022). Marketing Strategies used by Apple to Increase Customer Base. International Journal of Innovative Science and Research Technology7(7).

Joppa, L., Luers, A., Willmott, E., Friedmann, S. J., Hamburg, S. P., & Broze, R. (2021). Microsoft’s million-tonne CO2-removal purchase—lessons for net zero.

Kurita, J., Sugishita, Y., Sugawara, T., & Ohkusa, Y. (2021). We are evaluating Apple Inc mobility trend data related to the COVID-19 outbreak in Japan: Statistical analysis. JMIR public health and surveillance7(2), e20335.

Li, Y. (2021). Apple Inc. Analysis and Forecast Evaluation. Proceedings of Business and Economic Studies4(4), 71–78.

Mulaydinov, F. (2021). Digital Economy Is A Guarantee Of Government And Society Development. Ilkogretim Online20(3), 1474-1479.

Singh, A., & Pathak, G. S. (2021). Revisiting marketing strategy in emerging markets: a study of Amazon. com Inc. International Journal of Economics and Business Research22(2-3), 113-126.

Umar, A. (2022). Evaluation of management effectiveness in the organization (Based on Amazon Inc.) (Doctoral dissertation, Private Higher Educational Establishment-Institute “Ukrainian-American Concordia University”).


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