For a moment today, Microsoft passed Apple to become the most valuable U.S. company

by Alan Friedman / Nov 26, 2018, 9:37 PM

For a moment today, Microsoft passed Apple to become the most valuable U.S. company

Like the world of technology, the financial world is dynamic and never static. So when you combine the two together, things happen that very few people can predict. For example, back on August 2nd when Apple became the first U.S. publicly traded company to hit a valuation of one trillion dollars, Microsoft's market cap (stock price multiplied by shares outstanding) was $825 billion. Amazon, which would follow Apple into the trillion dollar club about a month later, was 1-B to Apple's 1-A. No one spoke about Microsoft.

While it would have been impossible to conceive of on August 2nd, earlier today, as noted by Business Insider, Microsoft briefly overtook Apple to become the most valuable U.S. publicly traded firm. The last time that this occurred was back in 2010. By the time trading closed for Monday, Apple was back on top.

It isn't that Microsoft's shares have rallied. Over the last three months, the stock has declined from $109.60 to $106.47. But that 2.9% decline has been dwarfed by Apple's plunge from $217.94 to $174.62 over the same time period, a 19.9% drop. Investors have been worried about slower than expected iPhone sales, which have reportedly led Apple to cut orders for its 2018 models.

In case you're wondering, Amazon's shares have declined 18% over the last three months from $1927.68 to $1,581.33. What this all proves is that what goes up can go back down, a lesson that not too many Apple investors have had to learn. Adjusted for subsequent stock splits, Apple's shares closed at $13.22 on January 9th, 2007. That's the day that Steve Jobs introduced the Apple iPhone. This means that an investor who bought 100 shares for approximately $1322 on the basis of the iPhone's unveiling, now owns $17,462 worth of Apple stock.

Based on Monday's 4pm closing prices, Apple is valued at $828.64 billion, Microsoft at $817.29 billion, and Amazon at $773.22 billion.

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15 Comments

1. TechNeck

Posts: 643; Member since: Aug 29, 2014

That's interesting.

posted on Nov 26, 2018, 9:54 PM 3

7. TheOracle1

Posts: 2033; Member since: May 04, 2015

The Sheep will be crying in their cornflakes today.

posted on Nov 27, 2018, 12:13 AM 5

2. Tech-shake

Posts: 211; Member since: Nov 14, 2016

Massive respect to Microsoft’s current ceo. He achieved the impossible with Microsoft ever since he took over as ceo back in 2014.

posted on Nov 26, 2018, 10:02 PM 8

4. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

What was impossible? Microsoft made more money than Apple for many years. In fact MS would be a significantly higher if they never had split them.

posted on Nov 26, 2018, 10:05 PM 2

6. perry1234

Posts: 630; Member since: Aug 14, 2012

The current CEO is much better than previous CEO, who drove Nokia into the ground and single-handedly removed MS from the smartphone business when it was lucrative. Now the top end smartphones are not selling that well because of incremental useful feature increase coupled with exponential price increase. Plus brands like Nokia(HMD) are offering great software support and bang-for-buck. Anyway, coming to the topic at hand, MS's current focus on cloud computing, premium PCs and IoT is indeed a step in the right direction.

posted on Nov 26, 2018, 11:36 PM 4

13. PhoneCritic

Posts: 1344; Member since: Oct 05, 2011

To be fair Steve Ballmer was the MS CEO and was not in charge of Nokia. That was Stephen Elop ( a former MS executive) that, in short, ran Nokia into the ground. He never became MS CEO as he had hope but left the company a few months after MS purchased Nokia since he was passed over for the CEO position.

posted on Nov 27, 2018, 10:54 AM 2

3. strategic_developer

The bigger they are, the harder they fall. Except with WTC where they freeze dried the building until it turned to powder. Apple quick! Think of a new fad! The iPhone I'd gonna fall to Mac-like marketshare. Hurry! Copy all Note features on the next model, and your training will be complete. Leave the dark side Apple.

posted on Nov 26, 2018, 10:03 PM 2

5. Peaceboy

Posts: 640; Member since: Oct 11, 2018

The plan of split screen, pnp, and pencil support is coming soon. Its just a software trick from ipad pro.

posted on Nov 26, 2018, 10:47 PM 0

15. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Apple copied from the Note you idiot.

posted on Nov 28, 2018, 5:30 AM 1

8. CreeDiddy

Posts: 2125; Member since: Nov 04, 2011

Good! This will force Apple to come up with less predictable phones. Although the 5.8, 6.1, and 6.5 seems to stay in tact for 2019. I would love for Apple to keep the prices lower, while giving us 5.8” budget phone, 6.5” mid tier phone and a 7.5” Apple Pencil Pro model. Users would prefer a more dynamic concept of iOS rather than static for iOS13. And please Apple make MacOS touchscreen. This is only the way in which Apple can grow next year. Coming out with XS and XS Max and XR will kill Apple’s growth momentum if it becomes a S year for 2019.

posted on Nov 27, 2018, 12:31 AM 0

11. Back_from_beyond

Posts: 1195; Member since: Sep 04, 2015

What growth momentum? Apple's number have been levelling off for the past few years. They're expecting a decline that's why they will no longer offer sales numbers. Also a more dynamic iOS would go completely against the company's policy of uniformity across the board, I wouldn't count on it.

posted on Nov 27, 2018, 5:07 AM 0

9. mootu

Posts: 1409; Member since: Mar 16, 2017

Apple wouldn't be No.1 if it wasn't for them buying back shares in massive amounts at the moment, this artificially props up the value of the company. They did exactly the same earlier this year when the stock price fell due to similar reports on the iPhone X lowering production. Tim Crook is desperate to keep that top spot and by the end if the fiscal year Apple will have spent over $100 Billion on share buyback.

posted on Nov 27, 2018, 1:00 AM 1

10. Vogue1985

Posts: 383; Member since: Jan 24, 2017

Barely surprised, in my opinion, they reached this point of value many years in. The cause of delay is the Billions of dollars that the Gates and Microsoft have away even since the company and themselves made more and to this current date, for the betterment of less fortunate people worldwide. NOW That's real wealth, Apple, Amazon etc will never be on that level.