- Wednesday, October 16, 2024
Microsoft is making significant strides in its quest to surpass Apple as the most valuable listed company in the United States. At the close of trading on Wednesday, Microsoft's fully diluted market capitalization stood at an impressive $2.85 trillion, according to FactSet. This places Microsoft just slightly behind Apple, whose market cap currently amounts to $2.90 trillion.
Interestingly, this isn't the first time that Microsoft has taken the lead over Apple in terms of market valuation. The last instance of such an occurrence was back in November 2021, as confirmed by Dow Jones Market Data.
Although both companies are influenced by similar factors, Microsoft has enjoyed a more favorable performance in recent months. The excitement surrounding its perceived leadership in artificial intelligence technology has bolstered investor confidence. Conversely, Apple has had to contend with concerns regarding its ability to reignite its growth.
In premarket trading on Thursday, Microsoft shares showed promising growth, rising by 0.6% to reach $385.15. At the same time, Apple's stock also experienced a 0.6% increase, reaching $187.25. Year-to-date figures indicate that Microsoft's stock has gained 1.8% as of Wednesday's close, while Apple has seen a decline of 3.3%.
It is worth noting that since February 2019, Apple and Microsoft have been the only two U.S. companies to hold the coveted title of largest company in terms of market cap.
The prevailing sentiment on Wall Street appears to be in favor of Microsoft's future triumph over Apple. Analysts have set an average target price for Microsoft at $420.91, suggesting a potential upside of 10% from current levels. In comparison, Apple's target price stands at $197.58, implying a more modest upside of 6.1%.
In conclusion, the battle for supremacy between Microsoft and Apple rages on, with Microsoft swiftly closing the gap as it steams ahead. Time will tell whether Microsoft can seize the crown and become the new king of the U.S. market.
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