Microsoft stock shocked markets in the week with a 0.6% rally that propelled the cloud computing investments to $852 billion in market cap exceeding Apples at $848 billion. Microsoft Corp’s (MSFT.O) stock market value exceeded that of Apple Inc’s (AAPL.O), a first in a space of 8 years. Looks like waning iPhone demand was surpassed by rising appetite for cloud computing products that Microsoft is enjoying. At share level Apple stocks are of higher value at $178.6 a share while Microsoft is trading for $110.90 a share.
Apple’s market capitalization caught up with Microsoft’s 8 years ago in 2010 when the windows company grappled with waning demand for personal computers at a time when iPhone came on the scene.
After Satya Nadella took over as chief executive in 2014, Microsoft reduced its reliance on Windows software for PCs and became a major player in cloud computing, second only to Amazon.com Inc. (AMZN.O).
Shares of Microsoft rose 0.6 percent to end the week at $110.89, putting its market capitalization at $851.2 billion. Apple shares fell 0.5 percent to $178.58 on the day, adding up to a market value of $847.4 billion.
Apple shares are now 19.6% lower than on Nov. 1, when the company warned after the regular session that holiday-quarter sales would likely miss Wall Street expectations.
Global demand for smartphones has slowed in recent years and in recent months, tech – stocks have been bearish as they price in tightening rates by the fed and U.S.-China trade war.
Analysts on average expect Microsoft’s revenue to increase circa 13% in 2019 ending in June, compared with an estimated lower than usual 5% rise for Apple in the same period.