Microsoft has overtaken Apple as the world’s most valuable company with a market cap of $2.45 trillion for the first time in more than a year. The Cupertino tech giant’s stock topped a $2 trillion market cap and a $150 share price just a year after becoming the first public company ever to hit $1 trillion – a historic milestone. However, Apple has been hit with supply chain issues due to the COVID-19 pandemic which has allowed other companies to catch up.
Microsoft is now the world’s most valuable company with a $2.45 trillion market cap
Microsoft Corp. is once again the most valuable public company with a market cap of $2.45 trillion. The software giant was able to overtake Apple as its stock fell in response to its earnings results for Q4, 2021. Though the company experienced growth across products and services along with earning $83.4 billion in revenue, its financials came in weaker than investors were expecting.
Last night, Apple CEO Tim Cook revealed that Apple’s revenue took a $6 billion hit because of supply constraints. Cook expects the revenue loss to be higher than $6 billion in the quarter ending in December 2021. Aside from the ongoing pandemic, high demand for products and the prevailing chip shortage can be blamed for causing supply constraints.
As a result of the $6 billion loss in revenue, Apple stock has fallen by 4%. Despite that, the company reported a record revenue growth of 29% Y-o-Y. Cook credits the success of Q4, 2021 to the company’s strong hardware upgrade cycle with the new iPhone 13, MacBook Pro, AirPods, and other products.
The value of Microsoft shares continues to increase as the software giant reports increasing income from its services. Unlike the Cupertino tech giant, Microsoft’s revenue is not impacted by supply chain constraints since its software-based.
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