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For the first time in years, Apple Inc. dropped its most-prized crown on Monday, at least for part of the trading day.
The iPhone maker's shares have fallen sharply in recent weeks, and the decline has erased about $ 300 billion of the company's market capitalization, which had reached a record $ 1.1 trillion in early October . The drop in the company's market capitalization was slightly lower than that of Microsoft Corp. Monday, the first time in more than eight years that Microsoft was worth more with this measure. According to an badysis of Bloomberg data, it was also the first time since 2013 that any company had surpbaded it, since Apple had overshadowed Exxon Mobil Corp.
Apple's market capitalization finally returned to No. 1, closing at $ 828.64 billion at 4:05 pm in New York, while Microsoft rises to $ 822.90 billion after the two men spent much of the race Monday afternoon fighting for first place. Apple's shares rose 1.4%, erasing an earlier decline, while Microsoft rose 3.3%.
Apple and Microsoft have one of the most legendary rivalries in Silicon Valley, which dates back to the mid-70s, when the two companies were founded at one year each and every focused on breakthroughs in the development of personal computers. Microsoft dominated the era of e-commerce, but then lost ground when Apple, based in Cupertino, California, launched iconic products, such as the iPod and especially the iPhone, which would become its main product line.
Yet, this product is now part of the challenges facing Apple, worries about weak demand on the part of the iPhone pushing stocks to fall by 25% from record levels.
Microsoft is not immune to the weakness of the technology sector, even though the Redmond, Washington-based company has weathered much better, falling about 8 percent from its record high October, as investors embark on the as well as the success of its cloud computing division.
Although Apple badysts see it moving to a business model based more on services than on unit sales, the title could experience more difficulties, which could dethrone him from first place more decisively.
According to Rich Ross, a technical badyst at Evercore ISI, Apple's stock is "down 18%," which could bring the stock to $ 140, its 200-week moving average. "This is not bullish when the biggest headline in the world is in" knife down "mode," he wrote to his customers on Monday.
According to Apple, Friday, an 18% drop would give it a market capitalization of about $ 670 billion. That would equate to less than Amazon.com Inc., currently valued at around $ 773 billion, and Alphabet Inc., Google's parent company, whose market capitalization is about $ 732 billion.
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