Tech twist

Home » News » Microsoft Surpasses Apple to Become the World’s Most Valuable Company

Microsoft Surpasses Apple to Become the World’s Most Valuable Company

After exceeding Apple’s market cap on Friday, Microsoft has become the most valuable public business. According to Reuters, Microsoft has a market capitalization of $2.49 trillion, while Apple has a market capitalization of $2.48 trillion. For the first time in almost a year, Microsoft’s market capitalization has surpassed Apple’s.

Microsoft is now most valuable public company

Apple’s stock hit $149.80 following a 1.8 percent drop when the market closed on Friday, according to the report. Microsoft, on the other side, had a 2.2 percent boost in its stock price to $331.62. Apple’s stock price plummeted after the company’s last quarterly reports failed to meet analysts’ expectations in the fourth fiscal quarter. Apple suffered a $6 billion loss in the fourth quarter as a result of supply chain issues, and the company expects the problem to worsen in the December quarter.

“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion. The supply constraints were driven by the industry-wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia,” Apple CEO Tim Cook told CNBC.

Meanwhile, Microsoft’s earnings call, which highlighted excellent results in Office, Windows, and cloud services, helped the business become the most valuable public corporation in the world. The Redmond behemoth reported $45.3 billion in revenue, $20.5 billion in net income, and $20.2 billion in operating income. It’ll be interesting to watch if Apple can retake the title of the most valuable firm later this Christmas season.

“Compared to less hardware-focused FAANG peers, Apple is also a lot more exposed to supply chain disruption,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.

Leave a Comment

Your email address will not be published.