The fall of Apple Inc. on Friday brought Microsoft Corp. to the position of the world’s largest listed company by market capitalization. Apple fell 1.8% after reporting fourth-quarter revenue that was below the analyst average, bringing the iPhone maker’s market value to $ 2.46 trillion. Microsoft shares rose 2.2% to reach a market value of $ 2.49 trillion, overtaking Apple after it posted 11 straight-quarter results earlier this week.
“If you’re looking for security in technology, Microsoft probably seems to me to be a safer option than Apple,” Michael Matusek, chief trader at US Global Investors, said in a telephone interview. “If there was a downturn in the economy, I would expect Microsoft to feel better because its products are diversified for more enterprises.”
Microsoft last toppled Apple from the throne in the first half of 2020, when investors flocked to the company’s growth amid the Covid-19 pandemic. Microsoft posted the best weekly gain since November.
In June, Microsoft took its place in the history books as the second US public company to reach a market value of $ 2 trillion, fueled by a**urances that its dominance in cloud computing and enterprise software will expand further into the post-coronavirus world.
Its shares have outperformed Apple and Amazon.com Inc. this year. on expectations of long-term revenue and revenue growth, and expansion in areas such as machine learning and cloud computing. Microsoft shares rose more than 49%, Apple about 13%, and Amazon more than 3%.
Its stock is not cheap, trading at a 20 percent premium to the high-tech Nasdaq 100. But the high valuations have not stopped investors from increasing their positions in tech stocks this year. The Nasdaq 100 is in step with the S&P 500, each of which is up more than 22% and the Nasdaq Composite is up about 20%.
According to Matushek, size gives birth to size, and strength gives birth to strength. This is what is nice to see; Microsoft was a rock star of the 90s – one of the four horsemen – and it has clearly regained its talent