For the first time since 1996, IBM's market value now exceeds that of Microsoft. IBM jumped past Microsoft to become the world's second most valuable tech company behind #1 Apple.
IBM's stocks have been blazing hot this year, rising 22 per cent to $US179.17. This increase has raised the company's market value to $US214 billion. Microsoft, however, has seen its stock slip 8 per cent to $US25.45 and its market value fall to $US213 billion.
These two companies may trade these #2 and #3 positions as their stock prices fluctuate, but the trend is pretty clear. Microsoft is on a slow decline, while IBM's decision to focus on services is starting to pay off.