Published: Sun, December 02, 2018
Business | By Eloise Houston

Microsoft overtakes Apple in market value for first time in eight years

Microsoft overtakes Apple in market value for first time in eight years

Microsoft briefly surpassed Apple as the most valuable U.S. company. After this statement, Apple shares fell more than 1.7 percent, shaving off billions of dollars off of Apple's market value to bring it down to $814 billion. The last time Microsoft was bigger than Apple based on market cap was in mid-2010, according to data compiled by Bloomberg. Apple was even lauded for being the first US company to have a $1 trillion valuation just this past August.

Shares of Apple were slightly lower in midday trading on Monday, while Microsoft jumped 2.4 per cent. Shares of Apple rose 0.9 percent, erasing an earlier decline, while Microsoft climbed 3.2 percent.

The main reason why Apple quickly lost its status this month of November is the steady decline of its market cap due to growing concerns over the weak sales of its new iPhones and following the company's decision to no longer disclose the unit sales of its iPhones, iPads and Mac devices.

Microsoft has managed to hold up better than other high-flying tech names after its first-quarter results showed that it continues to follow through on the vision of CEO Satya Nadella, who when he took over in 2014 said he wanted to focus on its subscription-based businesses and the cloud.

According to Rich Ross, a technical analyst at Evercore ISI, Apple's stock "has another 18 percent downside", which could take the stock to $140. "It is not bullish when the biggest stock in the world is in "falling knife" mode", he wrote to clients on Monday. Microsoft has jockeyed with both Apple and e-commerce giant Amazon for position among the most valuable companies. While MSFT began to see a pick up in market cap again in the early 2010s, it couldn't keep up with Apple.

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