Published: Thu, November 29, 2018
Money | By Bruce West

Microsoft tops Apple as world's most valuable company

Microsoft tops Apple as world's most valuable company

Microsoft's dominance in the PC software market gave it a market value that was larger than Apple's for years. The market closed Tuesday, Nov. 27, with Microsoft just behind Apple.

Microsoft surpassed Apple to become the world's most valuable publicly traded company.

Technology shares have been punished in recent months as investors worry about rising interest rates and fallout from a trade conflict between the United States and China.

It generated a capital of about 753.3 billion USA dollars in the year 2010 and became the most valuable organization in the United States.

This makes Microsoft valuation move even more remarkable - marking the first time since 2010 that the company is valued higher than Apple - and could potentially reignite the conversation surrounding one of technology's biggest rivalries.

After Satya Nadella took over as CEO in 2014, taking the reins from Steve Ballmer, Microsoft has been devoting more efforts to enterprise business and cloud services, while scaling back or pulling out from some hardware initiatives.

Apple has fallen about 23% since the end of the third quarter. Microsoft shares are down 8% from their September close. Considering that not long ago Apple (and Amazon not too long after) broke $1 trillion valuation, it has come a long way down since then, due in part to Apples latest (and most expensive) smartphones (XR, XS, XS Max) not selling as well as anticipated. Just last month, Amazon and Google parent Alphabet were also ahead of Microsoft in market capitalisation.

The success prompted many analysts to upgrade their target prices and recommendations on Microsoft stock, providing momentum to the counter. While MSFT began to see a pick up in market cap again in the early 2010s, it couldn't keep up with Apple. It's been a rough patch for tech stocks in general, but Microsoft has held up pretty well.

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