Microsoft surpassed Apple as the world's most valuable business, achieving this feat due to demand concerns and a poor start to 2021, with its market capitalization growing to $2.859 trillion.
Shift in tide:
Microsoft’s integration of OpenAI technology into its productivity software has helped the growth of Microsoft's cloud computing division during the July-September quarter. Apple has been having trouble with mounting demand, especially for the iPhone, which is its biggest cash cow. China's demand has decreased as Huawei continues to eat away at its market share and the country's economy recovers from the pandemic.
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Analysts’ reviews:
Redburn Atlantic, a brokerage, downgraded Apple's share price to "neutral" and said that China might hinder the company's performance in the upcoming years. Since the start of 2024, at least 3 of the 41 analysts that follow Apple, have dropped it in the rankings. Microsoft has been valued at $2.85 trillion higher than Apple. Apple's market capitalization peaked on December 14 at $3.081 trillion, with a 48% increase in shares, less than Microsoft's reported 57% increase, at the end of the year.
Future predictions:
Since 2018, Microsoft has barely outpaced Apple, but COVID-19 supply chain problems have harmed Apple's stock price in 2021. Wall Street is more optimistic about Microsoft because of its "sell" rating and positive brokerage recommendations.
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