Microsoft overtakes Apple to become the most valuable company in the world

Tram Ho

After yesterday’s earnings report, Apple’s stock value plummeted and created an opportunity for rival Microsoft to surpass the iPhone maker to become the world’s most valuable company.

Earlier in pre-opening trading, earnings reports that fell short of analyst estimates sent Apple shares down 3.8% to $146.9. This also pulls the iPhone maker’s market capitalization down to $2.44 trillion through the end of the trading day.

Meanwhile, rival Microsoft continues to reach new heights with a market capitalization of $ 2.45 trillion, surpassing Apple after reporting earlier this week showing the company’s business results hit a new high. for the 11th consecutive quarter.

Microsoft vượt mặt Apple trở thành công ty giá trị nhất thế giới - Ảnh 1.

If you look for safety in technology, Microsoft seems to me a safer choice than Apple .” Michael Matousek, chief trader at US Global Investors, said in an interview. ” If the economy is down, I would expect Microsoft to hold out better, because its products are more diversified in many areas .”

The last time Microsoft overtook Apple was in the first half of 2020 as investors flocked to growth stocks amid the Covid-19 pandemic. The same thing happened yesterday when the company’s shares rose 0.2% after the session.

This past June, Microsoft made its name in the history books as the second public U.S. company to reach a $2 trillion market cap, spurred on by expectations that its dominance in computing Cloud and enterprise software will expand further after the pandemic. Its stock outperformed Apple and Amazon on expectations of long-term growth in both earnings and revenue as well as expansion in areas like machine learning and cloud computing. Since the beginning of the year, Microsoft stock is up more than 40%, while Apple is up 15% and Amazon is up 6%.

Scale begets scale, power begets power. It’s very interesting to see. Microsoft was a rock star of the ’90s – one of the four horsemen – and they clearly did. Get your form back .” Matousek said.

Refer to Bloomberg

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Source : Genk