Microsoft about to topple Apple as world’s most valuable company

Apple and Microsoft

Apple Inc is set to lose its crown as the world’s most valuable public company to Microsoft Corp should the iPhone maker’s shares continue their downward slide.

Apple took a $6 billion hit to sales during the fiscal fourth quarter due to a nagging global supply chain problem.

Top boss Tim Cook said the impact will be even worse in the current holiday sales quarter.

The Cupertino, California-based company’s shares were down 3.5% at $147.30 in premarket trading, implying a market capitalization of $2.417 trillion if losses hold.

The Windows software maker’s shares were up 0.7% at $324.60 at a market valuation of $2.437 trillion.

Apple, which has repurchased $421.7 billion over the years, had announced a massive $90 billion share buyback in April. As a result, the company’s outstanding stock pool keeps shrinking, ending its fiscal fourth quarter with 16.4 billion shares.

Microsoft’s stock has surged more than 45% this year, with pandemic-induced demand for its cloud-based services driving sales. Shares of Apple have climbed 15% so far this year.

Apple’s stock market value overtook Microsoft’s in 2010 as the iPhone made it the world’s premier consumer technology company. The companies have taken turns as Wall Street’s most valuable business in recent years, with Apple holding the title since mid-2020.

Apple and Microsoft