Microsoft dethrones Apple, becomes world's most valuable company
Microsoft on Friday overtook Apple as the world's most valuable company by market capitalization, with about a $100 billion gap between the two companies when markets closed.
Credit: AppleInsider
Apple's market valuation, which is calculated by multiplying the share price by the number of outstanding shares, was $2.477.95 trillion as of 4 p.m. Eastern Time on Friday. Microsoft's capitalization was at $2.489.57 trillion.
The gap was bigger earlier on Friday, though Apple's stock price gained some ground after opening at a low around $147 per share.
Apple shares closed at $149.81, down 1.81% on the day.
Microsoft's share price, on the other hand, has surged since Tuesday. The company's stock price closed at $331.62 on Friday.
Apple's stock price when it reported September quarter revenues that missed Wall Street expectations on Thursday. Despite the worse-than-expected stock price, Apple's September quarter was still an all-time high and the company saw robust growth across most of its product categories.
According to Apple executives, the company lost about $6 billion in revenue because of ongoing supply constraints and chip shortages affecting industries across the globe.
Apple was the first U.S. company to reach market capitalizations of $1 trillion and $2 trillion. It became the world's most valuable company when it eclipsed Saudi Aramco in valuation in 2020.
Microsoft last overtook Apple in terms of market valuation in 2020 when the coronavirus pandemic wreaked havoc on supply chains and markets. Apple recovered, regained its top position, and went on to set new records across its product categories throughout the pandemic.
Although Apple was the first U.S. firm to reach a $2 trillion market capitalization, Microsoft crossed that threshold in June 2021. Since then, the company's share price has surged 34%.
Apple's share price has risen 20.5% since June 2021.
Microsoft and Apple have competed for the title of world's most valuable technology company in the past. Back in 2010, Apple dethroned Microsoft with a market capitalization of $222 billion. In 2018, Microsoft briefly regained that position.
Read on AppleInsider
Credit: AppleInsider
Apple's market valuation, which is calculated by multiplying the share price by the number of outstanding shares, was $2.477.95 trillion as of 4 p.m. Eastern Time on Friday. Microsoft's capitalization was at $2.489.57 trillion.
The gap was bigger earlier on Friday, though Apple's stock price gained some ground after opening at a low around $147 per share.
Apple shares closed at $149.81, down 1.81% on the day.
Microsoft's share price, on the other hand, has surged since Tuesday. The company's stock price closed at $331.62 on Friday.
Apple's stock price when it reported September quarter revenues that missed Wall Street expectations on Thursday. Despite the worse-than-expected stock price, Apple's September quarter was still an all-time high and the company saw robust growth across most of its product categories.
According to Apple executives, the company lost about $6 billion in revenue because of ongoing supply constraints and chip shortages affecting industries across the globe.
Apple was the first U.S. company to reach market capitalizations of $1 trillion and $2 trillion. It became the world's most valuable company when it eclipsed Saudi Aramco in valuation in 2020.
Microsoft last overtook Apple in terms of market valuation in 2020 when the coronavirus pandemic wreaked havoc on supply chains and markets. Apple recovered, regained its top position, and went on to set new records across its product categories throughout the pandemic.
Although Apple was the first U.S. firm to reach a $2 trillion market capitalization, Microsoft crossed that threshold in June 2021. Since then, the company's share price has surged 34%.
Apple's share price has risen 20.5% since June 2021.
Microsoft and Apple have competed for the title of world's most valuable technology company in the past. Back in 2010, Apple dethroned Microsoft with a market capitalization of $222 billion. In 2018, Microsoft briefly regained that position.
Read on AppleInsider
Comments
If you own shares of AAPL either directly or indirectly and you didn’t buy or sell today, you weren’t one of those who sent the share prices down.
The people who sent the share price down were today’s buyers and sellers. Some sellers offered some of their shares and today’s buyers didn’t want to pay yesterday’s prices. Some of those sellers decided to accept lower bids. It’s called a free market economy.
They aren’t random people. They are both institutional investors as well as retail investors. They all have tax IDs. The SEC knows exactly who these parties are and so will the IRS eventually. It’s not just Jimmy Fanboy Investor on AppleInsider, it’s more like some fund manager at FMR or someone who manages the pension fund of your state’s teachers union, hedge fund managers.
While the stock market will punish companies (and not just Apple) for missing expectations, the market is mostly forward looking. The market is also unhappy when the company withholds forward guidance.
Apple hasn’t offered guidance since the pandemic began and today’s market reaction was predictable.
Windows is a pretty small part of what Microsoft make their money.
Sflocal and bloggerblog need to read Microsoft’s SEC filings. Those documents cover how the company makes money.
This isn’t specific to Microsoft. This applies to all publicly traded American companies whether you sell bolts, sugar water, elevators or provide services like banking, dining, healthcare, or casino operation.
Certain SEC filings are required BY LAW.
Anyone who thinks Microsoft makes most of its money from Windows and Office hasn’t been paying attention for at least five years. Company business focuses can change. IBM doesn’t sell scales or PCs anymore.
Oh and the vast majority of Alphabet’s revenue comes from ad sales. Always been that way since they went public.
Also, Apple is more vulnerable to volatility in the supply chain.
AAPL is not a meme stock like GME.
Even the ANALysts aren't “random people.” The same people have been doing this for years sometimes decades.
Apple's senior management and investor relations teams probably have a pretty good idea how each analyst will forecast anyhow.
Let's remember that when Apple IPO-ed in December 1980 they accepted the fact that the company valuation would be set by investors. If they didn't want that, they should have stayed private or take themselves private at a later date. They are still a publicly traded company and are subject to market actions like what happened today regardless of whether they think it is "petty" or not.
It's not like Apple can turn on all deflector shields and keep the share price from dropping.
MSFT has done a great job getting into the cloud business and moving their core software assets into a subscription-base. In my view it just doesn't deserve a 10 point higher P/E as it's not growing its revenues much (any?) faster than AAPL.
Not agree, because all the people you’re talking about, are following the advices of really random people: so called “analysts”, the “best” of which are working for Wall Street.
By predicting unrealistic high expectations, they are creating negativity around Apple, even when Apple breaks its own quarterly revenue records