Microsoft Surpasses Apple as World’s Most Valuable Public Company
By Jace Dela Cruz
Jan 13, 2024 01:00 AM EST
Jan 13, 2024 01:00 AM EST
In a significant shift of financial standings, Microsoft emerged as the most valuable publicly traded company on Friday after briefly outpacing Apple during intraday trading Thursday.
According to CNBC, Microsoft's shares experienced a notable surge of over 3% throughout the week, culminating in the company's market capitalization of an impressive $2.89 trillion.
Concurrently, Apple witnessed a decline of over 3%, reducing its valuation to $2.87 trillion.
James Cordwell, an analyst from Redburn Atlantic Equities, decided to downgrade Apple from a buy to a neutral rating on Wednesday.
According to CNBC, Cordwell's assessment cited limited growth potential in iPhone sales over the next few years and an anticipated underperformance in Apple's March quarter.
READ ALSO: Apple's Market Cap Climbs Back Above $3 Trillion for the First Time Since August
A noteworthy development on Apple's front was the announcement on Thursday that former Vice President Al Gore would retire from the company's board next month.
Gore has been serving as a director since 2003. On the other hand, Microsoft received a vote of confidence on Thursday, showcasing its AI capabilities prowess during an event in San Francisco.
Analysts from Piper Sandler expressed optimism, saying they were "encouraged by the momentum around the most mature AI products," according to CNBC.
The analysts also cited the acceleration in GitHub website traffic over the past three months, solidifying their confidence. They have assigned Microsoft shares an equivalent of a buy rating. The shift in market dynamics is noteworthy, as Apple had been the most valuable public company for over a year, following short periods when Saudi Aramco and Microsoft held that distinction.
The change in Microsoft's status reflects the company's strong performance and strategic initiatives, particularly in the artificial intelligence world.
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