Microsoft overtakes Apple, hits $1 trillion market cap

From The Verge: “Microsoft is now a $1 trillion company”

Microsoft has become the third US company to pass a market cap of $1 trillion. The software giant passed the milestone briefly today after a jump in stock price today following strong fiscal Q3 earnings. Microsoft joins Apple and Amazon in hitting the $1 trillion valuation ahead of rival Google.

Microsoft’s stock price opened at $130 per share today, up around four percent from the $125 closing price yesterday. While the stock price will likely fluctuate a lot today, the company has hit the $1 trillion market during NASDAQ day trading hours this morning. Microsoft’s current valuation also means that has again taken over Apple as the world’s most valuable company, after briefly passing Apple back in November.

My take: These market values make me nervous.

3 Comments

  1. Fred Stein said:

    Philip, I’m with you about valuations in general, but not regarding Apple and Microsoft.

    Looking broadly at delivering people or food, from Tesla and Uber to Doordash and initiative of Google/Amazon and all in between, the aggregate capitalization is too high.

    For reference, Groupon hit a high of $26, has been around $3.50 for years now.

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    April 25, 2019
  2. Robert Paul Leitao said:

    For Apple shareholders to win, Microsoft shareholders don’t have to lose. Microsoft has experienced a remarkable era of growth and success since Satya Nadella took the reins at the company.

    Microsoft’s market cap is momentarily greater the Apple’s market cap for several reasons including Microsoft’s recent success. But keep please in mind Apple is currently in a short cycle of negative revenue, net income and eps growth due to the highly cyclical nature of iPhone sales and because Apple is also repurchasing its own shares which in the short-term can reduce the company’s market cap for the benefit of long-term gains in share price.

    I have no doubt Apple’s market cap will soon surpass (again) the market cap of its former nemesis. Apple is also transitioning to subscription-based services and everyone is the winner as digital services become more robust, useful and relevant to our daily lives.

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    April 25, 2019
    • David Emery said:

      Nadella’s recovery of Microsoft from the thrall of Ballmer is a business school story for the ages. In particular, Nadella’s emphasis on ‘cloud’ is definitely paying dividends on both MSFT’s bottom line and on Wall St.

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      April 25, 2019

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