According to the latest data, Microsoft is closing in on Apple as the most valuable American company with a market value of $2.73 trillion. Microsoft needs just $100 billion to catch up to Apple, which is currently valued at $2.83 trillion. The last time Apple was worth less than Microsoft was in November 2021, and the difference in market capitalization has not been this small since then.
While Apple is experiencing stagnation in its business due to increased competition in China and overall macroeconomic pressure, Microsoft’s stocks have performed better. In 2023, Microsoft’s stocks increased by 57% compared to Apple’s 48%. Additionally, Microsoft recorded smaller losses in early 2024.
One of the factors contributing to Microsoft’s success is its Azure cloud computing business, which benefits from artificial intelligence (AI) advancements. Analysts have noticed that Microsoft’s AI capabilities have allowed it to surpass its rival, Alphabet Inc., in the field of cloud computing. Microsoft’s business heavily relies on AI, and in the upcoming year, the company will face a crucial test to determine if customers are willing to pay for AI-driven enhancements in its software offerings.
On the other hand, Apple’s revenues have declined for four consecutive quarters, and the company faces challenges in the smartphone market. Two analysts have already downgraded Apple’s stocks in 2024, fearing ongoing pressure in the smartphone industry.
As the competition between Microsoft and Apple intensifies, it will be interesting to see if Microsoft continues its growth and challenges Apple for the position of the most valuable American company.
The source of the article is from the blog rugbynews.at