From Nasdaq:

Microsoft briefly overtook Apple as the world’s most valuable company on January 11th after the iPhone maker’s shares slumped. This is the first time since 2021 that Microsoft has held this position. Microsoft’s shares have risen due to its early lead in generative artificial intelligence through an investment in OpenAI, giving it a market value of $2.865 trillion.

Although Microsoft was briefly worth $2.903 trillion, its shares rose 0.7% on Thursday. Apple’s shares were 0.9% lower, giving it a market capitalization of $2.871 trillion. Analysts predict that China could negatively impact Apple’s performance in the coming years.

Apple’s shares have fallen 3.3% since the start of January, compared to a 1.8% rise for Microsoft. Both companies have expensive share price-to-earnings (PE) ratios. Apple is trading at a forward PE of 28, while Microsoft is trading around 31 times forward earnings. Both of these are above their respective 10-year average PE ratios.

Apple had a market capitalization of $3.081 trillion on December 14, 2021, and ended the year with a gain of 48%. Microsoft, on the other hand, had a 57% rise. Currently, nearly 90% of analyst recommendations for Microsoft are “buy”, compared to about two-thirds of Apple analyst recommendations. Microsoft has held the position of the world’s most valuable company a few times since 2018.

The news was first reported by Reuters. If you would like to read more about this article, click on the link: https://tmsnrt.rs/3vy2YV3



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