Apple market cap tops Microsoft, is now world's largest tech company
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.
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.
Comments
P.S. there is a second post by me down the page, please read before commenting , thx
too bad not in market share
Because market share is so important right?
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
- 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/
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
too bad not in market share
too bad not in market share
Say what? Don't be negative, you're raining on my parade.
DAAAAAAAAA!
regards,
Steve.
The next milestone: Besting MS' revenue per quarter.
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.
"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.
Looks a distinct possibility.
Only $60B away! Easy pezy.
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
.
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.
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?
"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.