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Unlike Apple and Amazon, Microsoft reported its 11th straight profitable quarterly results exceeding analysts’ estimates.
Microsoft Corporation (NASDAQ: MSFT) nearly overtook Apple Inc’s (NASDAQ: AAPL) position as the world’s most valuable company as MSFT surged. The shares of Apple are down 3.8% to $147.24 in pre-market trading, putting Microsoft in the line to become the world’s largest listed company by market capitalization. At the same time, Amazon.com Inc (NASDAQ: AMZN) is down over 4% in pre-market trading sessions.
Microsoft Could Overtake Apple as World’s Most Valuable Stock
Apple started seeing losses after the iPhone maker announced its Q4 revenue, below analysts’ predictions. If the company continues to trade at the current loss level when the market opens, it may lose part of its market capitalization and Microsoft may take over as the most valuable company. AAPL may fall to $2.41 trillion from its current $2.46 trillion market valuation. According to CEO Tim Cook, the company’s products are suffering from supply restrictions. Apple’s supply chain issues cost the company as much as $6 billion. Cook said the loss was 2larger than expected.” The CEO lamented:
“The supply constraints were driven by the industry-wide chip shortages that have been talked about a lot, and covid-related manufacturing disruptions in southeast Asia.”
To worsen the situation, Apple is expecting a bigger hit from supply chain sales in the current quarter.
With Amazon shares also down, both Apple and AMZN are set to lose over $180 billion in combined market cap.
Unlike Apple and Amazon, Microsoft reported its 11th straight profitable quarterly results exceeding analysts’ estimates. In an earlier report, Coinspeaker stated that Microsoft’s shares reached a record high in reaction to the impressive earning reports. At the time of the report, Microsoft was at a valuation of $2.43 trillion, nearing the market cap of Apple, which was $2.46. Microsoft closed the day trading at $2.44 trillion value and could surpass Apple, which is currently at $2.46 trillion.
Apple and Microsoft’s Stock
Being at a loss in pre-market trading, Apple is on its way to falling to $2.5 trillion. Except for the recent depletion in its stock due to the earnings call, Apple has been gathering gains over the past year. Data revealed that the iPhone maker had added more than 40% in a year period. AAPL has gained nearly 15% since the year started and increased further by 4.60% in the last three months. Over the past month, Apple has advanced 6.95% and another 2.61% in the last five days.
Microsoft stock also has been performing excellently since the past year, growing 60.20%. In 2021, the company has pulled in 45.83% gains and spiked 13.84% in the last three months. Similarly, MSFT increased over 12% in the last month and recorded an additional 4.91% increment in the last five days.