Published: Thu, November 29, 2018
Business | By Eloise Houston

Microsoft becomes world’s most valuable company after Apple slump

Microsoft becomes world’s most valuable company after Apple slump

But with all this movement, those top players are snapping at each others heels, and nowhere is this more evident than yesterday, when Microsoft briefly overtook Apple as the biggest tech company by valuation. The software company hit a valuation point of $813 billion today, which was just $1 billion ahead of Apple.

Going forward, Microsoft will continue to focus on the enterprise of things with their advanced Cloud solutions like Microsoft Azure, Office 365, etc as the company's push in the Cloud solutions is one the reasons Microsoft is performing so well.

Microsoft shares dipped 0.35 percent after-hours to $106.10, putting its market capitalisation also at $814 billion.

Microsoft, which is led by Satya Nadella and works in cloud-computing and other businesses, has lost a relatively modest 6.7% over that period.

After peaking in market cap at the highs of the dot.com bubble in 2000, MSFT began a slow drift lower in size before finally putting in a bottom at the lows of the financial crisis.

In early 2010, Apple's market cap surpassed that of Microsoft and remained above it for the next eight years, as consumers moved away from desktop computers in favor of smartphones and tablets.

Yet now, that very product is among the the challenges facing Apple, with concerns over weak iPhone demand pressuring shares to fall 25 percent from record levels. It didn't help that Microsoft's effort to make PCs more like phones, Windows 8, was widely panned.

Just a few years ago, Microsoft's prospects looked bleak.

But a turnaround began when the Redmond, Washington, company promoted Nadella as CEO in 2014.

Technology shares have been punished in recent months as investors worry about rising interest rates and fallout from a trade conflict between the United States and China. It doesn't face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices.

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