Microsoft briefly edged Apple this morning as the world’s largest company by value, but the iPhone maker fought back to reclaim the crown.
Due to the fluctuating share prices, the situation could change again today or later this week.
Growing concerns about iPhone sales have soured analysts’ views on Apple, which held the title for 539 days. But Microsoft’s forays into artificial intelligence, including its stake in ChatGPT, have experts seeing it as having more money-making potential than its old foe.
Microsoft, up nearly 1 percent early in Thursday’s session, had a market value of $2.87 trillion as of 10 a.m. in New York – after Apple’s shares fell a small amount, and it had a market value of $2 .86 trillion.
Soon after, Apple recovered a bit and Microsoft fell, reversing valuations and the crown of the largest market capitalization. By midday, Misrsoft had fallen to $2.85 trillion and Apple was back to $2.87 trillion.
Microsoft overtook Apple this morning for the world’s most valuable company – this shows each’s market cap as of 10am ET on January 11, 2024. Apple later reclaimed the crown
Apple’s stock price fell this week – Microsoft briefly took the title as the world’s largest company
An analyst at Barclays downgraded Apple shares, causing them to fall in value. Barclays said sales of the iPhone 15 – held up by Apple CEO Tim Cook – were “lackluster”.
Apple was the first company ever to achieve a $1 trillion valuation in 2018. Since then, it has remained the largest company in the world, with the exception of brief periods when Microsoft stole the title.
In addition to Microsoft’s stock having smaller losses so far in 2024, the Windows maker has had a slightly stronger year than Apple’s. Shares of Microsoft rose 57 percent in 2023, compared to 48 percent for Apple.
Apple depends on iPhones for just over half of its revenue. Microsoft once depended on its Windows software, but now it also makes money from cloud computing and devices like its Surface computers.
The next largest company is Saudia Arabian Oil with about $2.13 trillion, then Google owner Alphabet with $1.73 trillion and then Amazon with $1.51 trillion.
Apple shares rose 50 percent to hit a record high last year, making it the first company with a market value of more than $3 trillion. It reached the milestone first in June and then again in early December, when shares were above $193.
The sales slowdown in China is the biggest problem for Apple, according to analysts. This happens for two main reasons.
Chinese rivals such as Huawei are gaining market share there, and Beijing has restrictions on the use of iPhones by government workers.