Microsoft surpasses Apple as the world’s most valuable company after the iPhone maker’s stock slips on earnings miss




Microsoft CEO Satya Nadella. Manjunath Kiran/AFP via Getty Images


© Manjunath Kiran/AFP via Getty Images
Microsoft CEO Satya Nadella. Manjunath Kiran/AFP via Getty Images

  • Microsoft’s market capitalization surpassed Apple’s during Friday’s trading session.
  • The software maker’s market cap hit $2.46 trillion while Apple’s slipped to $2.43 trillion.
  • Apple stock dropped as supply-chain issues led the company to post its first quarterly revenue miss in years.

Microsoft’s market capitalization overtook Apple’s Friday, with shares of the iPhone maker under pressure after financial results underwhelmed projections set by Wall Street analysts.

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The Windows software producer’s market capitalization reached $2.46 trillion, higher than Apple’s market cap of $2.43 trillion, making Microsoft the most valuable company.

That title exchanged hands as Microsoft stock rose 1% to $327.50 Friday, while Apple dropped as much as 4% to $146.41 after the company late Thursday posted its first miss in quarterly revenue since 2018. Fiscal fourth-quarter sales of $83.4 billion were below expectations of $85 billion, hurt by supply-chain disruptions for semiconductors.

“This speed bump will continue to weigh on revenue in the critical December quarter in the lead up to the festive season. However, what is clear is that Apple’s short-term issues are not driven by a lack of demand,” said Victoria Scholar, head of investment at Interactive Investor, in a note Friday.

Apple’s stock roughly 12% advance during 2021 “feels like a damp squib compared to last year’s 70% gain with some of the shine coming off the tech sector amid lofty valuations and as post-pandemic life resumes,” she said.

However, she noted Apple could still potentially become the first company to reach a $3 trillion valuation in the coming years.

The last time Microsoft was more valuable than Apple was in May of 2020, amid the COVID-19 pandemic and stock market volatility. At the time, shares of the Redmond-based company suffered a slightly smaller decline than Apple did.

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