In a surprising turn of events, Microsoft has emerged victorious in the race for the title of the most valuable publicly traded company, a position that Apple has long held. The unexpected shift in fortunes took place during intraday trading on Thursday, gaining momentum and solidifying its position by the end of Friday’s U.S. trading session.
Microsoft’s remarkable performance in the stock market over the week witnessed a notable surge in its shares by more than 3%. This surge propelled the tech giant’s market capitalization to an astonishing $2.89 trillion. In stark contrast, Apple experienced a significant dip of over 3% in its stock price, resulting in a reduction of its overall valuation to $2.87 trillion.
This market shake-up can be traced back to Wednesday when Apple faced a downgrade from Redburn Atlantic Equities analyst James Cordwell. Cordwell shifted his stance on the tech giant from a “buy” to a “neutral” rating, citing concerns about Apple’s limited iPhone growth potential in the coming years. Additionally, worries about the anticipated performance in the upcoming March quarter added to the negative sentiment surrounding Apple’s stocks.
In a separate but equally significant development, Apple announced that former Vice President Al Gore would be retiring from the company’s board next month. Gore, who had been a director at Apple since 2003, leaves behind a legacy tied to the company’s strategic decisions and advancements.
On the other side of the spectrum, Microsoft received a resounding vote of confidence on Thursday. The company showcased its artificial intelligence capabilities to developers at an event in San Francisco, garnering positive attention from analysts. Piper Sandler analysts expressed optimism about the strong momentum surrounding Microsoft’s mature AI products. They specifically highlighted the positive trend in GitHub website traffic, which has been steadily increasing year over year for three consecutive months.
The upbeat sentiment from analysts translated into a favorable equivalent of a “buy” rating for Microsoft shares, signaling a positive outlook on the company’s performance.
For over a year, Apple has maintained its position as the most valuable publicly traded company, fending off challenges from entities like Saudi Aramco and, notably, Microsoft. However, with this recent shift, Microsoft has temporarily claimed the top spot, marking a significant milestone in the ongoing competition between these tech giants. The market will undoubtedly be closely watching how both companies navigate the ever-evolving landscape in the coming weeks.
