Microsoft has ended Apple's reign as the world's most valuable listed company, reclaiming the top spot for the first time in more than 15 years. Friday's close gave Microsoft a market capitalisation of more than $851bn (£668bn), surpassing Apple's $847bn.
The two tech giants had traded places throughout the week, but Apple held on until Friday, when its shares slipped 0.5% to $178.60, while Microsoft rose 0.6% to $110.89. Apple's stock has now fallen nearly 25% since October, a steeper decline than the broader market, amid worries about weakening smartphone demand and the threat of additional US tariffs on Chinese-made goods. That sell-off has wiped more than $200bn off Apple's value.
Despite the reversal, Apple remains the larger business by annual revenue and profit. However, investors are increasingly backing Microsoft's growth prospects, driven by its cloud services division, which sells to other companies. Apple's fortunes are more closely tied to consumer spending, which many fear could cool.
Daniel Ives, managing director of equity research at Wedbush Securities, said Microsoft is well placed for significant expansion as more firms adopt its cloud products. He added that chief executive Satya Nadella is positioned to further transform the company into a “cloud behemoth” in the coming years.
Microsoft's latest ascent recalls its dominance in the 1990s and early 2000s, when it was the world's most valuable company. A landmark anti-trust case and the rise of mobile phones then dented its fortunes. Apple took over as the most valuable tech firm in 2010 and became the overall number one in 2011, ousting Exxon Mobil. It became the first US company to reach a trillion-dollar valuation this summer but ceded that milestone in the autumn as its share price tumbled.
