Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft, trading under the ticker symbol NASDAQ:MSFT, has reached a new milestone by overtaking Apple (NASDAQ:AAPL) as the world’s most valuable publicly traded company. This historic shift comes as Microsoft’s stock enjoyed a solid Friday gain, surpassing Apple’s more marginal rise.

On Friday, Microsoft’s stock gained 1% to close at $388.47 per share, leading to a market capitalization of just under $2.9 trillion. This was approximately $12 billion higher than Apple, which rose just 0.2% on the same day.

Microsoft’s recent strength is evident from its stock, which has risen by 15% over the past six months, compared to Apple’s 2% decline during the same period. Looking back over the past year, Microsoft gained nearly 63%, while Apple achieved a gain of just over 39%.

The leadership of Satya Nadella has been pivotal in guiding Microsoft’s success. The company has benefitted from investor positivity around its potential in artificial intelligence, as well as its robust position in cloud computing. In further support of Microsoft, on Thursday, Morgan Stanley expressed confidence in the company, stating that it was best positioned to take advantage of increased IT budgets in the coming year.

This achievement marks a significant moment for Microsoft as it reclaims a most-valuable title it held over two years ago.

On the other hand, Apple, trading under NASDAQ:AAPL, is now the focus of a new short thesis from investment firm Hedgeye, which expects “flattish” growth following the tech giant’s strong year. This is attributed to boosted multiples, even as Apple has witnessed sales declines in certain areas.