Microsoft continues to trail Apple in terms of market capitalization, with the gap between the two companies the largest in more than 20 years.
Based on intraday behavior, Microsoft
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Apple’s market capitalization was $3.63 trillion on Friday.
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That’s $2,754 billion. If the corresponding stock market movement continued through the close of trading, the difference would be worth $309.4 billion, the largest between the two companies since Oct. 21, 2003, according to Dow Jones Market Data.
Of course, things were very different in 2003. At the time, his $312.1 billion spread between the two tech companies was nearly as large as Microsoft’s entire valuation. Microsoft’s October 21, 2003 market value was $320.2 billion, while Apple’s valuation was only $8.1 billion.
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For context on Apple’s business at the time, its 2003 annual report stated that “the company’s advanced products, such as iPod digital music players, personal digital assistants, mobile phones, digital still and movie cameras, CD and DVD players, and other electronic devices, “new digital devices” were being discussed. device. ”
Of course, Apple’s business is much more advanced than it is now, but investors haven’t been too excited this year, and the stock is down about 8% through 2024.
The company returned to year-over-year revenue growth in its most recent quarter after four consecutive quarters of declining sales, but signaled that sales could decline again in ongoing quarters. Some on Wall Street wonder if Apple’s innovative ways are fading.
The difference in market capitalization between Apple and Microsoft is especially surprising considering how far ahead Apple was just under a year and a half ago. As of October 28, 2022, Apple was worth $719.2 billion more than Microsoft, according to Dow Jones Market Data.
The decline in Apple stock starting in 2024 comes after the stock soared 48% in 2023. Microsoft, on the other hand, has been able to maintain its momentum from last year, when its stock price rose 57%, and is up another 10% so far. this year.
In the eyes of Wall Street, Microsoft appears to be toying with the hot artificial intelligence market, as the company’s Azure cloud computing business benefits from growing customer interest in AI workloads. At the same time, Microsoft is introducing AI capabilities into its software products, and the company is investing in OpenAI.
Apple has been using AI across its business for years, including features like the Siri voice assistant and the iPhone’s photo recognition feature. But company executives minimized discussion of AI in recent earnings calls, even as other company executives scrambled to convince Wall Street that AI was on trend. ing.
Learn more (from August 2023): Apple’s Tim Cook explains why he won’t showboat when it comes to AI
“Our MO has always been to do the work and then talk about the work, and not get in front of ourselves,” CEO Tim Cook said during the company’s last earnings call. Told. But he added that Apple has some “things” in the works regarding generative AI, and “we’re very excited about it and we’ll be talking about it later this year.”
opinion: Can Apple build better AI? Questions abound as Tim Cook hints at what’s to come.
Goldman Sachs on Friday removed Apple’s stock from its list of criminal convictions, keeping it rated buy. According to a Goldman report on the list changes, analyst Mike Ng said, “The market’s focus on slowing product revenue growth reflects the strength of Apple’s ecosystem and the sustainability of its associated revenue.” “I continue to believe that it obscures sexuality and visibility.”
