Microsoft beats Apple again, Reclaimed No. 1 in global market capitalization after 16 months – For the first time in 16 months, Microsoft, the world’s largest software firm, overcame Apple and reclaimed the world’s top market value position.
Microsoft’s stock increased 2.24 percent from the previous day to a new high of $331.62 per share on the 29th (local time). It became the most valuable corporation in the world with a market valuation of $2,490 billion (about 2923 trillion won). Apple’s stock, on the other hand, dropped 1.81 percent on the day, dropping to second place with a market valuation of $2.48 trillion (2911.5 trillion won).
The ostensible reason is the mixed performance. Apple fell short of market expectations with sales of $83.36 billion (97.9 trillion won) in the third quarter of this year. Apple CEO Tim Cook said the industry was hit hard by a shortage of semiconductors across the industry and production disruptions caused by the coronavirus outbreak.
On the other hand, Microsoft recorded good results thanks to its solid cloud (virtual server) business. Sales in the third quarter were $45.17 billion (52.9 trillion won), up 22% from a year ago. This was the result of exceeding market expectations for 11 consecutive quarters. Intelligent Cloud business unit revenue grew 31% year-over-year. As a result, Microsoft’s stock rose 7.24% in the past week alone.
The IT industry is giving an analysis that Microsoft’s fundamental business competitiveness has been strengthened. With the advent of smartphones and tablet PCs in the mid-2000s, Microsoft’s PC-centered business fell into a slump. Microsoft faced a crisis in 2014, and after Satya Nadella took office as CEO, it began to grow again by focusing on the cloud. Since then, Microsoft has been up and down with Apple for the top spot by market cap, but since July of last year, Apple has been taking the top spot.
However, as the cloud business grew significantly amid the corona crisis, Microsoft regained its crown after 16 months. Apple shares are up 13% this year, while Microsoft shares are up 49%. Michael Matosek, chief trader at US Global Investors, told Bloomberg, “MS is more resilient to crises such as recessions because its business is diversified.”