Microsoft (NASDAQ:MSFT) has surpassed Apple (NASDAQ:AAPL) in market capitalization, making it the world’s most valuable publicly traded company.
At the end of trading last week, Microsoft had a market capitalization of nearly $2.49 trillion U.S., while Apple’s stood at $2.46 trillion U.S.
The change comes after Apple missed earnings expectations on October 28 and its share price fell as a result.
Apple reported that its revenue missed Wall Street expectations in the company’s fiscal fourth quarter, a result of supply chain constraints. Chief Executive Officer (CEO) Tim Cook said the revenue shortfall is estimated at $6 billion U.S., but he expects worse supply chain issues in the December quarter.
Sales of iPhones at the company were up 47% year-over-year but also fell short of analyst expectations.
At the same time, Microsoft beat revenue expectations in its most recent quarterly results, which climbed 22% year-over-year. That was the fastest growth rate at Microsoft since 2018. Microsoft’s shares rallied on the news.
Apple was the first company to reach a $1 trillion U.S. and $2 trillion U.S. market capitalization. It became the world’s most valuable publicly traded company when it surpassed state oil giant Saudi Aramco in market capitalization last year.
Microsoft last topped Apple in market capitalization in 2020 as the pandemic wreaked havoc on supply chains. It first closed above a $2 trillion U.S. market capitalization in June of this year after revealing the first major update to Windows in more than five years.
At market close on Friday last week (October 29), Microsoft’s stock was up more than 48% year to date, while Apple’s had risen 13% on the year.
Tech Insider
