Microsoft finished the trading day with a greater market value than Apple. This is the first time that Microsoft was worth more than Apple since 2011.
Microsoft’s comeback can largely be attributed to its subscription model. Rather than selling one time products like Windows or Office, Microsoft generated monthly revenue through subscriptions for these products. CNBC says:
Microsoft ended Friday’s U.S. trading session as the most valuable publicly traded company, surpassing Apple after briefly topping the iPhone maker during intraday trading Thursday.
Shares of Microsoft climbed more than 3% for the week, bringing the company’s market cap to $2.89 trillion, while Apple’s stock dropped by over 3%, lowering its valuation to $2.87 trillion.
AI is also a large reason for Microsoft’s rise in the stock market. With Apple lagging behind its competitors in AI, Microsoft has been moving ahead with its Copilot program. The NY Times continues:
When Apple replaced Exxon, it ushered in an era of tech supremacy. The values of Apple, Amazon, Facebook, Microsoft and Google dwarfed former market leaders like Walmart, JPMorgan Chase and General Motors.
The tech industry still dominates the top of the list, but the companies with the most momentum have put generative A.I. at the forefront of their future business plans. The combined value of Microsoft, Nvidia and Alphabet, Google’s parent company, increased by $2.5 trillion last year. Their performances outshined Apple, which posted a smaller share price increase in 2023.
Tech continues to be the leading industry on the stock market, and will likely continue to be in the near future. All other asset classes rely on tech to increase their own productivity.
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