Apple market cap tops Microsoft, is now world's largest tech company

Posted:
in AAPL Investors edited January 2014
Apple's market capitalization hit $222 billion on Wednesday, leaving it ahead of rival Microsoft as the largest technology company in the world when the closing bell rang on Wall Street.



The dethroning of Microsoft now makes Apple -- for now -- the second largest American company, behind only Exxon-Mobil. Apple has a ways to go to catch the oil giant, which has a market capitalization of nearly $280 billion.



But Apple on Wednesday had the distinction of being the largest technology company in the world, surpassing its Redmond, Wash., rival, in terms of market capitalization, reflected through stock price.



Apple's stock finished the day down 1.09, or 0.44 percent, to $244.13, giving it a market cap of $222 billion. Microsoft also lost $1.09, but its stock price of $24.98 left it with a market cap of $219 billion. The two companies were neck-and-neck much of the day, with the volatility of the market having the two trade places for some time.



But Apple also has a price-to-earnings ratio of more than 20, while Microsoft's is nearly 13, and Exxon's is 13.5.



However long it lasts, Wednesday's accomplishment is yet another milestone for Apple, which has turned itself around since company co-founder Steve Jobs returned to the helm and oversaw a tremendous decade in the 2000s. Apple's success has been largely credited to Jobs, who was named the world's best performing CEO last year. The chief executive increased his company's market cap a whopping $150 billion over a 12-year span.







In April, Apple passed Microsoft in the S&P 500 rankings, which rely on a float-adjusted market cap. Those numbers do not use the full market basis, but apply only to shares on the open market.
«13456712

Comments

  • Reply 1 of 236
    smiles77smiles77 Posts: 668member
    Yeha! I'm betting we see a letter from Steve pretty soon about this. And a mention June 3 & 7.
  • Reply 2 of 236
    soskoksoskok Posts: 107member
    too bad not in market share



    P.S. there is a second post by me down the page, please read before commenting , thx
  • Reply 3 of 236
    zindakozindako Posts: 468member
    This is unprecedented, and WWDC is right around the corner, I wonder how Steve Ballmer will react to this recent news, maybe he'll bash the iPad some more.
  • Reply 4 of 236
    zindakozindako Posts: 468member
    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



    Because market share is so important right?
  • Reply 5 of 236
    ozexigeozexige Posts: 215member
    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



    Sore loser maybe?



    AI's mention of PE ratios is really quite pointless (BTW a higher PE sort of indicates 'over-valued'), why? Amazon's PE is 55!



    "Business isn't what it used to be", sorry MS
  • Reply 6 of 236
    daveswdavesw Posts: 406member
    "What I can?t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he can?t win."



    - Bill Gates, June 1998











    (AUDIO)

    http://www.huffingtonpost.com/2010/0..._n_533817.html



    http://macdailynews.com/index.php/we...omments/25385/



    http://www.cringely.com/2010/04/masters-tournament/
  • Reply 7 of 236
    dougdoldedougdolde Posts: 53member
    Microsoft is pretty dead in terms of innovation. Glad to see Apple finally beat them after years of the sleezy Bill Gates.
  • Reply 8 of 236
    cgc0202cgc0202 Posts: 624member
    That Apple can dominate in profitability without being the marketshare leader speaks volume.



    They call this the "20-80" strategy. You only have to cater to the higher end of the market and still make profit.



    In the case of the digital music market, Apple priced its iPods to cater to middle ground to expand its target, and yet remain highly profitable.



    Apple is trying to repeat that also with the iPad, and so far, it is doing well. As important, the competition had to go back to the drawing board.



    CGC



    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



  • Reply 9 of 236
    monstrositymonstrosity Posts: 2,234member
    My ten year bet finally comes to an end! The ridicule I had from people back then as well. Stupid fools should have stopped arguing with me and stuck some money on the cash cow.
  • Reply 10 of 236
    ivladivlad Posts: 742member
    WOW! This just proves that Market Share is nothing when it comes to measuring company's success and power. I am actually really happy that Apple finally has this kind of power. 30 years later!
  • Reply 11 of 236
    smiles77smiles77 Posts: 668member
    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



    Say what? Don't be negative, you're raining on my parade.
  • Reply 12 of 236
    monstrositymonstrosity Posts: 2,234member
    Dear Bill,



    DAAAAAAAAA!



    regards,



    Steve.
  • Reply 13 of 236
    solipsismsolipsism Posts: 25,726member
    This happened faster than I expected, but I'll have to see Apple break away by a sold $20B before I think that it's actually in the lead and not "tied" for all intents and purposes.



    The next milestone: Besting MS' revenue per quarter.





    Quote:
    Originally Posted by OzExige View Post


    Sore loser maybe?



    AI's mention of PE ratios is really quite pointless (BTW a higher PE sort of indicates 'over-valued'), why? Amazon's PE is 55!



    "Business isn't what it used to be", sorry MS



    No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.



    I see nothing negative about Apple's measly 20.
  • Reply 14 of 236
    daylove22daylove22 Posts: 215member
    Quote:
    Originally Posted by davesw View Post


    "What I can?t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he can?t win."



    - Bill Gates, June 1998











    (AUDIO)

    http://www.huffingtonpost.com/2010/0..._n_533817.html



    http://macdailynews.com/index.php/we...omments/25385/



    http://www.cringely.com/2010/04/masters-tournament/



    Microsoft share price has been in the $20-27 range for over 3 years. Apple share price has skyrocketed.
  • Reply 15 of 236
    monstrositymonstrosity Posts: 2,234member
    What d'ya reckon then ? Surpass exxon by next year to become el supremo champion of the USA?



    Looks a distinct possibility.



    Only $60B away! Easy pezy.
  • Reply 16 of 236
    dick applebaumdick applebaum Posts: 12,527member
    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



    Of course you mean magazine covers and Executive of the Year awards, product quality, support ratings market share:



    SJ/Apple vs BalmerMicroSoft



    .
  • Reply 17 of 236
    ozexigeozexige Posts: 215member
    Quote:
    Originally Posted by solipsism View Post




    No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.



    I see nothing negative about Apple's measly 20.



    Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.
  • Reply 18 of 236
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Soskok View Post


    too bad not in market share



    Let's see. Apple reportedly takes 1/3 of entire handset market's operating profits. Apple reportedly takes 1/3 of the worldwide PC market's operating profits. They have owned the PMP market's profits for many years and I'm sure have already cornered the tablet market's profits. What share of the market's profits do they need to make before you realize that Apple is trouncing everyone in all four areas of business they compete in?
  • Reply 19 of 236
    ilogicilogic Posts: 298member
    Apple hasn't scratched the surface of what they're about to do to tech and communications.
  • Reply 20 of 236
    anonymouseanonymouse Posts: 6,960member
    Quote:
    Originally Posted by davesw View Post


    "What I can?t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he can?t win."



    - Bill Gates, June 1998



    All signs indicate that they are still trying to figure out what's going on.
Sign In or Register to comment.