Market - - Dec 03,2018
Microsoft has dethroned Apple to grab the title of being the world's most valuable company, recovering the position after 15 years.
The software biggie on Friday (end) recorded a market value exceeding $851bn (£668bn), as compared to $847bn acquired by Apple Inc.
Since the start of 2018, the two companies have been battling it out to possess the top place.
In the past few weeks, Apple was being consistent in staying head as trade concluded on every business day. But the tables turned on Friday as shares in Microsoft climbed more than 0.6% and closed at t $110.89. On the other hand, Apple shares stood at $178.60, slumping by almost 0.5%.
Shares in Apple have dipped significantly by 25% since the month of October. This drop is directly linked to the slowing demand for smartphones as well as the chances of additional US tariffs associated with Chinese-made goods.
As per the investors, the stakes are placed on Microsoft and its brighter prospects linked to the cloud services unit.
In recent years, the software giant has deviated its approach and has exploited positive business opportunities in the cloud.
According to Daniel Ives, managing director of equity research at Wedbush Securities, Microsoft is likely to experience noteworthy growth, since more firms are signing up for the company’s cloud products.
Microsoft boss Satya Nadella has indeed put in effective methods to make Microsoft a tough participant in the escalating market. Presently, the firm is placed at the second spot, with 13% shares in the cloud-computing sector falling behind Amazon.com.