From NASDAQ:

Apple’s stock has fallen 4% this year, with concerns about iPhone sales putting it at risk of losing its title as the world’s most valuable company to Microsoft. Apple’s total market value is now $2.866 trillion, while Microsoft’s comes in at $2.837 trillion, again raising the question of whether the tables may soon turn. Meanwhile, iPhone sales in China have fallen by 30%, signaling some competition from rival brands as Apple prepares for the launch of its Vision Pro mixed-reality headset on Feb. 2. Despite Apple’s to date profitability, analysts contend that Microsoft’s cloud business will see it through, with an anticipated 16% increase in revenue for Microsoft’s most recent quarter. After missing Wall Street expectations in its most recent quarterly report, Apple is now expected to post a 0.7% revenue increase for Q4, the first in four quarters. Both tech giants are currently trading at high price-to-earnings ratios that exceed their 10-year averages. Apple’s forward PE ratio is 28, well above its historical 19, while Microsoft’s is 31, significantly above its historical average of 24.

While a brief stock market value dip for Apple in 2021 likewise raised concerns about the company’s worth, it seems that recent trends in stock prices could lead to Microsoft once again taking over as the world’s most valuable company. While such would not be the first time Microsoft has surpassed Apple in market value, the smartphone market and global demand have also produced unpredictable shifts in the tech world lately.



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