Microsoft catches up with Apple's stock market value
- Author: Eleanor Harrison Dec 02, 2018,
Dec 02, 2018, 2:12
Microsoft and Apple are competing head-to-head to be the most valuable company. Apple's shares quickly tumbled as many of its suppliers made a decision to cut their forecasts because of an evident drop in overall smartphone demand.
Microsoft shares rose more than 3 percent as USA markets and large cap tech stocks shook off recent losses.
Analysts have identified the cloud business, which has grown exponentially under Nadella, as one of the main reasons it has caught up so convincingly, coupled with the feeling that Apple is treading water with new devices seeming to drive up profit margins without actually doing much new or revolutionary.
As reported by Bloomberg, Microsoft today caught up with and surpassed its competitor in terms of market capitalization, hitting a total valuation of $812.93 billion at around 1:05PM EST.
It's worth noting that Microsoft's brief reign as the world's most valuable company wasn't necessarily a result of anything it did right.
The main reason why Apple quickly lost its status this month of November is the steady decline of its market cap due to growing concerns over the weak sales of its new iPhones and following the company's decision to no longer disclose the unit sales of its iPhones, iPads and Mac devices.
Microsoft shares dipped 0.35 percent after-hours to $106.10, putting its market capitalisation also at $814 billion.
There could be more pain ahead for the stock, which could dethrone it from the number-one spot in a more decisive fashion.
Based on Apple's Friday close, an 18 per cent drop would give it a market cap of about US$670 billion.