August 15, 2022
Microsoft rides cloud computing boost to nearly overtake Apple as most valuable company

A jump in Microsoft shares nearly overtook Apple Inc as the world’s most valuable company on Wednesday, a day before the iPhone maker reported its quarterly results.

Shares of Microsoft jumped 4.2 per cent to a record 323.17 (roughly Rs 24,225) on the back of strong quarterly growth in its Azure cloud-computing business, taking the software maker’s market capitalization to $2.426 trillion (about Rs 1,81,86,020 crore). Gone. That’s just short of Apple’s valuation of $2.461 trillion (about Rs 1,84,45,070 crore), according to Refinitiv data.

Apple shares fell 0.3 percent as the bell rang on Thursday, with investors focused on how the global supply-chain crisis is challenging the company’s ability to meet demand for its iPhone models.

Microsoft’s stock is up 45 percent this year, fueled by pandemic-induced demand for sales of its cloud-based services. Apple’s shares have climbed 12 percent in 2021.

Apple’s stock market value overtook Microsoft in 2010 as the iPhone made it the world’s leading consumer technology company. Both companies have served as Wall Street’s most valuable company in recent years, with Apple holding the title since mid-2020.

In its report late Tuesday, Microsoft forecast a strong end to the calendar year thanks to its booming cloud business, but it warned that the supply-chain crisis would continue to dog major units, such as its Surface. Manufacturer of laptops and Xbox gaming consoles.

According to Refinitiv, analysts expect Apple to report September-quarter revenue up 31 per cent to $84.8 billion (about Rs 6,35,560 crore) and adjusted earnings per share of $1.24 (about Rs 90 crore).

Leave a Reply

Your email address will not be published.