Microsoft Overtakes Apple To Become World’s Most Valuable Company

The drop in Apple shares on Friday propelled Microsoft to the position of the world’s largest and most valuable company.

Apple fell as much as 3.9% to $146.65 after reporting fourth-quarter revenue that came in below the average analyst estimate, which gave the iPhone maker a market value of $2.41 trillion. Microsoft rose as much as 1.1% to hit a market value of $2.46 trillion, racing past Apple after reporting estimate topping results for an 11th straight quarter earlier this week.

The last time Microsoft had the lead on Apple was in the first half of 2020 as investors flocked into growth stocks amid the Covid-19 pandemic. Microsoft is on pace for its best weekly gain since January.

In June, Microsoft took its place in the history books as just the second U.S. public company to reach a $2 trillion market value, buoyed by bets its dominance in cloud computing and enterprise software will expand further in a post-coronavirus world. Its shares have outperformed Apple and Amazon this year on expectations of long term growth for both earnings and revenue, and expansion in areas like machine learning and cloud computing. Microsoft is up more than 45%, while Apple is about 11% higher and Amazon is up more than 1%.

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