From Nasdaq:

Microsoft’s stock market value surpassed Apple for the first time since 2021, making it the world’s most valuable company at $2.887 trillion. Apple’s market capitalization was $2.875 trillion. Demand concerns caused Apple’s shares to decrease by 3% in 2024, while Microsoft rose by 3%.

Apple’s market capitalization reached a peak of $3.081 trillion on Dec. 14, according to LSEG, as a result of growing worries about smartphone demand.

Microsoft’s success in generative AI, fueled by an investment in ChatGPT-maker OpenAI, has contributed to its increased market value. On the other hand, Apple has experienced tepid demand, particularly in China where its market share has been affected by competition from Huawei.

Apple’s Vision Pro mixed-reality headset, set for release on Feb. 2, is expected to have little impact on its earnings per share in 2024. Analysts predict Microsoft to report a 16% increase in revenue to $61.1 billion due to ongoing growth in its cloud business.

Both Apple and Microsoft seem to be overvalued compared to their expected earnings. Apple’s trading at a forward PE of 28 while Microsoft is trading at around 32 times forward earnings. Microsoft briefly overtook Apple as the most valuable company in 2021 and has done so several times since 2018.

Last November, Apple gave a sales forecast for the holiday quarter that missed Wall Street expectations, largely due to weak demand for iPads and wearables. The company is expected to post revenue up 0.7% to $117.9 billion, which would mark its first revenue increase in four quarters. Microsoft reports its results in the coming weeks.



Read more: Microsoft edges out Apple as world’s most valuable company