Join our daily newsletter At The Bell to receive exclusive market insights
- A surge in Microsoft’s shares on Wednesday brought the computer giant close to unseating Apple as the world’s most valuable company
- That jump sent the company’s market capitalisation soaring to US$2.426 trillion (A$3.23 trillion), just short of Apple’s US$2.461 trillion (A$3.28 trillion) valuation
- Meanwhile, shares in Apple dropped as investors pondered the potential impact of the current supply chain crisis
- Since 2010, the two behemoths have taken turns as top dog, with Apple holding the title since mid-2020
A surge in Microsoft’s shares on Wednesday brought the computer giant close to unseating Apple as the world’s most valuable company, just a day before the iPhone maker was due to release its quarterly results.
Boosted by strong growth in its Azure cloud-computing segment, Microsoft’s stock jumped 4.2 per cent to a record US$323.17 (A$430.84).
That jump sent the NASDAQ-listed company’s market capitalisation soaring to US$2.426 trillion (A$3.23 trillion), just short of Apple’s US$2.461 trillion (A$3.28 trillion) valuation, according to Refinitiv data.
Meanwhile, Apple’s shares dropped 0.3 per cent as investors focused on how the global supply chain crisis might challenge the company’s ability to meet the demand for its iPhones.
Microsoft’s shares are up 45 per cent so far this year, with pandemic-driven demand for its cloud-based services pushing up sales. Apple, on the other hand, is up 12 per cent year-to-date.
Apple first overtook Microsoft in 2010 after the emergence of the iPhone made it the world’s go-to consumer technology titan. Since then, the two behemoths have taken turns as top dog, with Apple holding the title since mid-2020.
In a report published late on Tuesday, Microsoft forecast a strong end to the year, thanks largely to its booming cloud business. However, it warned that ongoing supply chain concerns will continue to hamper key units, like the ones producing its Surface laptops and Xbox gaming consoles.
According to Refinitiv, analysts are expecting Apple to report a 31 per cent jump in September-quarter revenue to US$84.8 billion (A$113.05 billion) and adjusted earnings per share of US$1.24 (A$1.65).
