Microsoft Becomes Most Valuable US Company Amid Apple’s Declining Share Price

Andrew Cummings
November 28, 2018

It's a somewhat surprising turn of events as less than two months ago Microsoft's topped out at $887 billion while Apple's reached a peak above $1.12 trillion - just one month after becoming the first United States company with a $1 trillion valuation.

Microsoft challenged Apple's title as the most valuable US company on Monday, as the iPhone maker weathered a slump that drove the tech giant into a recent bear market over concerns related to smartphone sales in the critical holiday season.

The news may come as a shock to many considering that less than two months ago, Apple peaked above $1.2 trillion while Microsoft recorded a market value of $887 billion.

Both companies' market capitalisations were calculated using outstanding shares reported in their most recent 10-Q filings.

It isnt to say that Microsoft hasnt faced any challenges lately, but Apple has been just been barely able to get by with investors.

Microsoft has lost some public mindshare to Apple in the past few years as the Android vs iOS battle became as important at the Mac vs PC one, and Microsoft failed to capture the mobile market.

Shares of the iPhone maker have dropped sharply over the past several weeks, and the decline has erased about US$300 billion in market capitalisation from the company, which crested at a record US$1.1 trillion valuation in early October. For now though, Microsoft is doing a little better than Apple.

Apple has slid amid growing concerns the company is seeing weak demand for iPhones, by far its biggest product line.

According to Rich Ross, a technical analyst at Evercore ISI, Apple's stock "has another 18 per cent downside", which could take the stock to US$140.

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