Microsoft Edges Closer to Apple’s Throne

by

In the perpetual game of corporate one-upmanship, Microsoft is slyly
inching towards dethroning Apple as the world’s most valuable company.

How? Well, it all follows a recent stumble in tech giant Apple’s stock
prompted by anxiety over iPhone sales. A familiar tale? Microsoft, increasingly
benefiting from its cloud
and corporate business
, seems to think so.

Apple’s shares have taken a 4%
dip in 2024 after a triumphant 48% surge last year
. In stark contrast,
Microsoft’s stocks are on the rise, up 2% this year after an even more impressive
57% surge in 2023. On Wednesday, Apple’s shares wobbled by 0.4%, Microsoft rose
by 1.6%, narrowing the valuation gap between the two tech behemoths. Apple’s
market value currently hovers at $2.866 trillion, with Microsoft hot on its
trail at $2.837 trillion.

China’s iPhone Woes and Corporate Thrusts

China poses a headache for Apple as iPhone sales plummeted by 30% in
early 2024, hinting at fierce competition from alternatives including Huawei.
Meanwhile, Apple preps for the grand reveal of its Vision Pro mixed-reality
headset on February 2, with Microsoft observing closely. A report from UBS,
however, predicts that the device’s impact on Apple’s earnings per share will
be “relatively immaterial” in 2024.

A Recurring Rivalry

Microsoft has teased Apple before, briefly snatching the title of the
most valuable company in 2021 amid Coronavirus supply chain disruptions. The
question lingers: can history repeat itself?

Pricing Peaks and Expectation Games

Both tech giants play the pricing game, with Apple’s forward PE at 28,
soaring above its 10-year average of 19. Microsoft, not to be outdone, trades
around 31 times forward earnings, surpassing its 10-year average of 24. A risky
gamble? Perhaps, but in the high-stakes world of tech, these titans play for
keeps.

Revenue Reports and Crystal Balls

Apple’s recent sales forecast for the holiday quarter fell short of
Wall Street’s expectations, predicting a meager 0.7% revenue increase to $117.9
billion. On the flip side, analysts predict a robust 16% revenue boost for
Microsoft, reaching $61.1 billion, driven by relentless growth in its cloud
business. As the corporate saga unfolds, stay tuned for the climax when both
giants unveil their financial cards in the coming weeks.

This news comes not long after Apple’s CEO Tim Cook revealed that he
hopes to remain
in post for some time yet
.

In the perpetual game of corporate one-upmanship, Microsoft is slyly
inching towards dethroning Apple as the world’s most valuable company.

How? Well, it all follows a recent stumble in tech giant Apple’s stock
prompted by anxiety over iPhone sales. A familiar tale? Microsoft, increasingly
benefiting from its cloud
and corporate business
, seems to think so.

Apple’s shares have taken a 4%
dip in 2024 after a triumphant 48% surge last year
. In stark contrast,
Microsoft’s stocks are on the rise, up 2% this year after an even more impressive
57% surge in 2023. On Wednesday, Apple’s shares wobbled by 0.4%, Microsoft rose
by 1.6%, narrowing the valuation gap between the two tech behemoths. Apple’s
market value currently hovers at $2.866 trillion, with Microsoft hot on its
trail at $2.837 trillion.

China’s iPhone Woes and Corporate Thrusts

China poses a headache for Apple as iPhone sales plummeted by 30% in
early 2024, hinting at fierce competition from alternatives including Huawei.
Meanwhile, Apple preps for the grand reveal of its Vision Pro mixed-reality
headset on February 2, with Microsoft observing closely. A report from UBS,
however, predicts that the device’s impact on Apple’s earnings per share will
be “relatively immaterial” in 2024.

A Recurring Rivalry

Microsoft has teased Apple before, briefly snatching the title of the
most valuable company in 2021 amid Coronavirus supply chain disruptions. The
question lingers: can history repeat itself?

Pricing Peaks and Expectation Games

Both tech giants play the pricing game, with Apple’s forward PE at 28,
soaring above its 10-year average of 19. Microsoft, not to be outdone, trades
around 31 times forward earnings, surpassing its 10-year average of 24. A risky
gamble? Perhaps, but in the high-stakes world of tech, these titans play for
keeps.

Revenue Reports and Crystal Balls

Apple’s recent sales forecast for the holiday quarter fell short of
Wall Street’s expectations, predicting a meager 0.7% revenue increase to $117.9
billion. On the flip side, analysts predict a robust 16% revenue boost for
Microsoft, reaching $61.1 billion, driven by relentless growth in its cloud
business. As the corporate saga unfolds, stay tuned for the climax when both
giants unveil their financial cards in the coming weeks.

This news comes not long after Apple’s CEO Tim Cook revealed that he
hopes to remain
in post for some time yet
.



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