Microsoft has overtaken Apple as the world’s most valuable company, according to a BBC report.
Microsoft’s stock market valued ended above Apple’s for the first time after more than 15 years. As of Friday’s close, Microsoft gained more than $851bn (£668bn) compared to Apple’s market cap of $847bn (£664bn).
After what’s been a turbulent week of trading for both software companies, Microsoft shares gained more than 0.6% to close at $110.89 (£87.06) on Friday, while Apple’s shares ended at $178.60 (£140.22), down 0.5% from last year.
Apple’s shares fell by almost 25% since October amid concerns of waning iPhone demands and that US tariffs on Chinese imported technology.
Apple has lost $200bn (£157bn) in market capitalisation since announcing the company’s fourth quarter results.
Investors believe that Microsoft’s future looks brighter than ever. Microsoft reported substantial growth in its cloud computing services, after the introduction of Microsoft Azure last month, upgrading its cloud services, and revamping its sales force.
However, Apple relies heavily on consumer spending, which could slow down or decrease over time.
Chief Executive Officer of Microsoft, Satya Nadella said in a research note, that the company has been working to “further transform [Microsoft] into a cloud behemoth over the coming years”.
In the late 1990s, Microsoft was viewed as one of the valuable companies in the world.
But, the company stumbled after spending several years fighting an anti-trust case with the US government. The company’s growth dropped even more as the company failed to cope with the emergence of mobile phones.
In 2010, Apple took advantage of Microsoft’s shortcomings and became the most valuable company thanks to the introduction of their revolutionary iPhones.
Apple eclipsed Exxon Mobil as the most valuable company in 2011. Apple became the first company to reach a trillion-dollar market capitalisation last summer, but it now seems that the company has lost that distinction after its shares and market value dropped last Friday.