Microsoft Has Beat Apple To Become The Most Valuable US Company

Microsoft Has Beat Apple To Become The Most Valuable US Company

Microsoft on Monday surpassed Apple as the most valuable company in the US, with a market capitalization of about $812 billion. Apple’s market cap was about $1 billion less.

It’s a somewhat surprising turn of events, as less than two months ago Microsoft’s market value topped out at $887 billion while Apple’s reached a peak above $1.12 trillion. In August, Apple became the first US company with a $1 trillion valuation.

But a lot has happened since then, as the stock market suffered through its so-called Red October, one of its worst months since the financial crisis, with the tech-heavy Nasdaq Composite shedding more than 12%.

Read more: Microsoft’s CTO lays out the 2 tech trends he believes will change the world: ‘People haven’t wrapped their heads around this yet’

Apple has gotten mauled since early October, as the tech sell-off and fears of slowing demand for its iPhones weighed. Shares have tumbled into a bear market, down nearly 24% from their September peak. Several suppliers have cut their forecasts, citing a drop in smartphone demand. That caused Goldman Sachs to lower its price target for a third time in November to $182 & about 6% above where shares were trading Monday.

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

And while sales of its cloud-computing unit, Azure, grew at their slowest pace in at least two years, they were still up 76% annually, remaining the strongest rival to the dominant Amazon Web Services. Microsoft shares are down 8% from their September close at about $105 each.

Microsoft

This article was originally published by Business Insider Australia. Read the original here.