Microsoft became the most valuable company in the world when its stock market value soared past Apple’s on Friday for the first time since November 2021.
The Redmond, Wash.-based software giant hit a market value of $2.89 trillion, while Apple’s value dropped by more than 3% to $2.87 trillion on Friday. Microsoft had briefly surpassed Apple on Thursday, but shed its gains before the market closed.
Microsoft has seen a surge of success in recent months as it embraces artificial intelligence, led by the company’s $13 billion investment in OpenAI, although that has opened up the tech giant to several lawsuits. Microsoft also held an event in San Fransisco on Thursday to showcase its artificial intelligence capabilities that was well received by Wall Street analysts, CNBC reported.
Copilot, a digital assistant, and Azure Cloud, a cloud computing platform designed to rival Amazon Web Services and Alphabet’s Google Cloud, have also been successful, pushing Microsoft’s stock to increase by 57% last year.
Cupertino, Calif.-based Apple, on the other hand, was recently downgraded by Barclays and Redburn Atlantic Equities analysts. The firms cited slowing sales growth for Apple’s iPhones, with Barclays extending its concerns to Mac computer sales.
“When you compare and contrast the two, the growth Apple is showing is nothing special, whereas Microsoft has done a better job of executing and demonstrating earnings growth,” David Katz, chief investment officer at Matrix Asset Advisors, told Bloomberg. “Microsoft also has a much clearer roadmap with AI, and it has done a great job articulating how that will accelerate growth to make its long-term prospects even more compelling.”
Apple is also facing a potential antitrust lawsuit from the Department of Justice over its attempt to protect the dominance of the iPhone, stifle rivals and make it difficult for consumers to drop its products. The company has also been forced to stop selling its Apple Watch Series 9 and Apple Watch Ultra 2 as it contends with a U.S. International Trade Commission decision.
Former Vice President Al Gore and ex-Boeing CFO James Bell are also retiring from Apple’s board of directors. Gore has served on the company’s board for more than 20 years.
