Microsoft may just be overtaking Apple as Wall Street's most valuable company
- US Market
- 1 month ago
Not so long ago Apple Inc (AAPL.O) had broke through the $1 trillion mark, however the iPhone manufacturer has now lost the top placing as Wall Street's most valuable company and it is looking likely it will be replaced by Microsoft Corp (MSFT.O)
Apple shares took a 1.77% dip in extended trade after President Donald Trump told The Wall Street Journal there is a good chance he will slap tariffs on mobile phones and laptops iported from China.
The loss wiped out the 1.35% gain during the official trading session and put Apple’s stock market value at $814 billion.
Microsoft shares dipped 0.35% after-hours to $106.10, putting its market capitalization also at $814 billion. Microsoft had rallied by more than 3% during Monday’s official trading session, when the market notched broad gains.
Both companies’ market capitalizations were calculated using outstanding shares reported in their most recent 10-Q filings.
Trading after the bell is often volatile and lacks the volume typically seen in official trading sessions.
Tech shares have taken a fair amount of punishment recently due to investor's worries of the ongoing trade war between the U.S. and China.
However Apple has certainly taken the heavier losses, as it plunged 23% since the first day of November, already warning that the holiday quarter expectations were likely to be missed.
Added to the fact that worldwide demand for smartphones has slowed down considerably, Apple's stellar growth may have begun to slowdown.
Apple’s market capitalization overtook Microsoft’s in 2010 as the maker of Windows software struggled with slow demand for personal computers, due in part to the explosion of smartphones driven by the iPhone.
However since Satya Nadella took over as chief executive in 2014, Microsoft has reduced its reliance on Windows software for PCs and become a major player in cloud computing, second only to Amazon.com (AMZN.O).
According to Refinitiv data, 33 analysts recommend Microsoft as a buy while only one has a negative rating followed by one neutral rating.
Source: Smart Trend Team