Microsoft has caught up to Apple in market value
- Author: Anthony Vega Dec 02, 2018,
Dec 02, 2018, 2:11
Shares of the iPhone maker have dropped sharply over the past several weeks, and the decline has erased about US$300 billion in market capitalisation from the company, which crested at a record US$1.1 trillion valuation in early October.
Just four months after Apple Inc breached the $1 trillion mark, the iPhone maker has all but lost its lead as Wall Street's most valuable company and is on the verge of being replaced by Microsoft Corp.
Apple became the first USA company to surpass a market cap of $1 trillion last August. In August, Apple became the first United States company with a $1 trillion valuation.
Apple has slid amid growing concerns that the company is seeing weak demand for iPhones, by far its biggest product line.
Shares of Apple were slightly lower in midday trading on Monday, while Microsoft jumped 2.4 per cent.
Thirty-three analysts recommend buying Microsoft's stock, while just one has a negative rating and another has a neutral rating, according to Refinitiv data. Even though Microsoft isn't immune to struggles in the technology sector, it still held up much better than Apple since it only fell 9 percent compared to Apple's 25 percent, as pointed out by Bloomberg. When he took over in 2014, the executive said he wanted to focus on subscription-based business and the cloud.
Apple shares have fallen more than 20 percent since the company reported earnings on November 1. "It is not bullish when the biggest stock in the world is in "falling knife" mode", he wrote to clients Monday. Amazon's shares have also been swooning. its market cap is now around $US768 billion. That would put it below both Amazon.com Inc., now valued about $773 billion, and Google-parent Alphabet Inc., which has a market cap of about $732 billion.