Microsoft overtakes Apple to become the most expensive company in the world

Microsoft overtakes Apple to become the most expensive company in the world

Microsoft dethroned Apple in terms of market capitalization on October 29 and became the world’s most expensive listed company.

Microsoft’s revenue grew 22% in the third quarter of 2021. Photo: AFP

Microsoft’s market capitalization reached nearly $ 2.490 billion at the close of the stock market on October 29, while Apple reached about $ 2.460 billion. Microsoft stock has soared more than 48% year-to-date, while Apple stock has recorded a gain of nearly 13%.

Apple on October 28 said its fourth quarter revenue of the fiscal year (ie the third quarter of 2021) fell short of Wall Street expectations, due to bottlenecks in the supply chain. Apple CEO Tim Cook explained the company’s estimated revenue shortfall of about $6 billion in the quarter, and predicted supply chain problems would worsen in the fourth quarter of 2021.

Although iPhone sales increased 47% year-over-year, it still fell short of analyst expectations, partly because the fourth quarter of the fiscal year was only a few days after Apple sold the iPhone 13.

Earlier, to attract the attention of software developers, Apple announced competition with Google’s Android mobile operating system and Microsoft’s Windows desktop operating system.

While Apple’s revenue fell short, Microsoft recorded revenue that beat expectations in the first quarter of the fiscal year (the third quarter of 2021), with an increase of about 22% year-over-year. This is Microsoft’s fastest revenue growth since 2018, according to CNBC.

Apple is the first company in the world to reach a market capitalization of $1 trillion and $2 trillion. It became the world’s most expensive listed company after overtaking oil giant Saudi Aramco last year.

The last time Microsoft rose to lead Apple in market capitalization was 2020, when the supply chain was devastated by the Covid-19 pandemic. For the first time, Microsoft reached a market capitalization of $2 trillion in June 2021 after the company released the first major Windows update in more than five years.

Recently, the world’s trillion-dollar enterprise club welcomed a new member Tesla. Tesla shares ended the trading day on October 25 with a 12.66% gain to $1,024 per share, helping the US electric car company’s market capitalization surpass the $1 trillion mark. Thanks to that, Tesla officially “sitting on the same tray” with Apple, Amazon and Microsoft in the business club of 1 trillion USD or more.

Strong sales in the EU market and the news that car rental company Hertz ordered 100,000 Tesla cars to build a fleet of electric vehicles gave Tesla stock a boost. The 100,000-unit order from Hertz brought Tesla $4.2 billion in revenue, the highest level in the history of electric vehicle transactions, according to Bloomberg. It is expected that these vehicles will be handed over to Hertz within the next 14 months.