Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Applied Materials, Inc. and MicroStrategy Incorporated have showcased contrasting strategies in this domain.

A Decade of Financial Strategy

From 2014 to 2023, Applied Materials, Inc. has seen a steady increase in SG&A expenses, peaking at approximately $1.8 billion in 2023. This represents a growth of nearly 100% over the period, reflecting their aggressive expansion and investment in administrative capabilities. In contrast, MicroStrategy Incorporated maintained a more conservative approach, with expenses hovering around $260 million in recent years, indicating a stable yet cautious financial strategy.

The Verdict

While Applied Materials, Inc. has embraced growth, MicroStrategy's consistent expense management highlights a focus on efficiency. The missing data for 2024 suggests ongoing strategic adjustments. As these companies evolve, their SG&A strategies will continue to shape their financial landscapes.