Microsoft's market value overtakes Apple's to close out
week
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[December 01, 2018]
By Noel Randewich
SAN FRANCISCO (Reuters) - Microsoft Corp's
<MSFT.O> stock market value closed above Apple Inc's <AAPL.O> for the
first time in eight years on Friday as the Windows maker benefited from
growth in cloud computing while Apple was hit by investor concern about
iPhone demand.
Shares of Microsoft rose 0.6 percent to end the week at $110.89, putting
its market capitalization at $851.2 billion. Apple shares fell 0.5
percent to $178.58 on the day, adding up to a market value of $847.4
billion.
The two stocks jostled for the top spot over the course of the week,
with Microsoft's stock market value exceeding Apple's at several points
in intra-day trading but not at the close.
Both companies' market capitalizations were calculated using outstanding
shares reported in their most recent 10-Q filings.
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Apple's market capitalization overtook Microsoft's in 2010 as Microsoft
struggled with slow demand for personal computers, due in part to the
explosion of smartphones like the iPhone.
After Satya Nadella took over as chief executive in 2014, Microsoft
reduced its reliance on Windows software for PCs and became a major
player in cloud computing, second only to Amazon.com Inc <AMZN.O>.
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![](../images/120118pics/busine47.jpg)
The Microsoft sign is shown on top of the Microsoft Theatre in Los
Angeles, California, U.S. October 19,2018./File Photo
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In recent months, technology shares have been punished by investors worried
about rising interest rates and the potential consequences of the U.S.-China
trade war.
Apple shares are now 19.6 percent lower than on Nov. 1, when the company warned
after the regular session that holiday-quarter sales would likely miss Wall
Street expectations.
Global demand for smartphones has slowed in recent years.
Thirty-three analysts recommend buying Microsoft's stock, with just one sell
rating and one neutral, according to Refinitiv data.
Twenty-five analysts have positive ratings on Apple, 16 are neutral and none
recommend selling, the data show.
Analysts on average expect Microsoft's revenue to increase 12.7 percent for its
fiscal year 2019 ending in June, compared with an estimated 5 percent rise for
Apple's fiscal 2019, which ends in Sept, according to the Refinitiv data.
(Reporting by Noel Randewich. Additional reporting by Sinéad Carew in New York;
Editing by Sonya Hepinstall)
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