https://www.reuters.com/technology/microsoft-overtakes-apple-worlds-most-valuable-company-2024-01-11/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv Reuters home * World * Business * Markets * Sustainability * Legal * Breakingviews * Technology * Investigations * More My View Register * Technology Microsoft briefly overtakes Apple as world's most valuable company By Aditya Soni January 11, 20249:43 PM UTCUpdated ago * * * * * * * * Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration taken Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/ Illustration/File Photo Acquire Licensing Rights Jan 11 (Reuters) - Microsoft (MSFT.O) on Thursday briefly overtook Apple (AAPL.O) as the world's most valuable company for the first time since 2021 after the iPhone maker's shares made a weak start to the year on growing concerns over demand. Microsoft's shares have risen sharply since last year, thanks to the early lead the company has taken in generative artificial intelligence through an investment in ChatGPT-maker OpenAI. Microsoft's stock closed 0.5% higher, giving it a market valuation of $2.859 trillion. It rose as much as 2% during the session and the company was briefly worth $2.903 trillion. Shares of Apple closed 0.3% lower, giving the company a market capitalization of $2.886 trillion. Microsoft and Apple have jostled for top spot over the years. "It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," said D.A. Davidson analyst Gil Luria. Microsoft has incorporated OpenAI's technology across its suite of productivity software, a move that helped spark a rebound in its cloud-computing business in the July-September quarter. Apple, meanwhile, has been grappling with weakening demand, including for the iPhone, its biggest cash cow. Demand in China, a major market, has slumped as the country's economy makes a slow recovery from the pandemic and a resurgent Huawei (HWT.UL) chips away at its market share. "China could be a drag on performance over the coming years," brokerage Redburn Atlantic said in a client note on Wednesday, downgrading Apple's shares to "neutral". At least three of the 41 analysts covering Apple have lowered their ratings since the start of 2024. At $2.85 trillion, windows maker overtakes Apple in terms of valuation At $2.85 trillion, windows maker overtakes Apple in terms of valuation Shares of Cupertino, California-based Apple have fallen 3.3% in January as of the last close, compared with a 1.8% rise in Microsoft. Both stocks are expensive in terms of their share price-to-earnings (PE) ratio, a common method of valuing publicly listed companies. Apple is trading at a forward PE of 28, well above its average of 19 over the past 10 years, according to LSEG data. Microsoft is trading around 31 times forward earnings, above its 10-year average of 24. Shares of Apple, whose market capitalization peaked at $3.081 trillion on Dec. 14, ended last year with a gain of 48%. That was lower than the 57% rise posted by Microsoft. Microsoft has briefly taken the lead over Apple as the most valuable company a handful of times since 2018, including in 2021 when concerns about COVID-driven supply chain shortages hit the iPhone maker's stock price. Currently, Wall Street is more positive on Microsoft. The company has no "sell" rating and nearly 90% of the brokerages covering the company recommend buying the stock. Apple has two "sell" ratings and only two-thirds of the analysts covering the company rate it a "buy". Reporting by Aditya Soni in Bengaluru; Additional reporting by Jaspreet Singh; Editing by Shounak Dasgupta and Shweta Agarwal Our Standards: The Thomson Reuters Trust Principles. * * * * * Acquire Licensing Rights, opens new tab Read Next * Illustration of bitcoin TechnologycategoryUS bitcoin ETFs see $4.6B in volume in first day of trading9:23 PM UTC * CES 2024 consumer electronics trade show in Las Vegas World at WorkcategoryGoogle lays off hundreds in Assistant, hardware, engineering teams6:48 AM UTC * The logo of Amazon is seen at the company logistics centre in Boves TechnologycategoryAmazon cuts 5% of Audible division's workforce - Business Insider6:44 PM UTC * Illustration shows U.S. Securities and Exchange Commission logo and representations of cryptocurrency TechnologycategoryUS SEC approves bitcoin ETFs in watershed for crypto market8:36 AM UTC LSEG Workspace More from Reuters Technology * Bitcoin and ether souvenir tokens plunge into water Ether jumps, bitcoin holds gains after ETF regulatory approval Future of Moneycategory * January 11, 2024 * 12:34 PM UTC Bitcoin held near 21-month highs on Thursday after U.S. regulators approved a spot bitcoin exchange traded fund (ETF), while the second-biggest cryptocurrency ether gained on hopes that ETFs tracking it could be the next to win approval. * A bitcoin is seen in an illustration picture taken at La Maison du Bitcoin in Paris ANALYSISSpot bitcoin ETFs may face uphill battle to widen token's appeal11:27 AM UTC * Illustration shows ChatGPT logo and AI Artificial Intelligence words TechnologycategoryUS startup funding drops 30% in 2023 despite AI frenzy6:12 PM UTC * The Google logo is pictured at the entrance to the Google offices in London TechnologycategoryEU court adviser sides with Google, Amazon in Italian rule spat10:46 AM UTC * Illustration shows OpenAI and ChatGPT logos TechnologycategoryOpenAI in content licensing talks with CNN, Fox and Time - Bloomberg News1:13 AM UTC Site Index Browse * World * Business * Markets * Sustainability * Legal * Breakingviews * Technology * Investigations, opens new tab * Sports * Science * Lifestyle About Reuters * About Reuters, opens new tab * Careers, opens new tab * Reuters News Agency, opens new tab * Brand Attribution Guidelines, opens new tab * Reuters Leadership, opens new tab * Reuters Fact Check, opens new tab * Reuters Diversity Report, opens new tab Stay Informed * Download the App (iOS), opens new tab * Download the App (Android), opens new tab * Newsletters, opens new tab Information you can trust Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day. 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