Microsoft Corp. eclipsed Apple Inc. as the most valuable US company for the first time in nearly 16 months after the smartphone giant reported a rare loss of sales amid supply bottlenecks.
ended Friday's session on a 1.8% decline, which equates to a valuation of $ 2.458 trillion based on the company's last published stock count of 16.406 billion. Microsoft stocks
rose 2.2% on Friday, a valuation of $ 2.49 trillion based on the 7.508 billion stock count the company announced in its September quarter filing.
According to Dow Jones Market Data, Microsoft last had a larger market capitalization than Apple on July 2, 2020. The rally in Microsoft shares on Friday crowned the best month for the stock since October 2015, also according to Dow Jones Market Data, with price gains of 18% over the month.
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Microsoft and Apple are both under pressure from delivery bottlenecks, but Apple seems to be feeling the sting more strongly as hardware makes up the majority of its sales. The company fell short of fiscal fourth quarter revenue expectations as it estimated a $ 6 billion negative impact from delivery issues, and Apple executives forecast a greater impact for the current quarter.
While COVID-related production stoppages have subsided, the company is still facing chip shortages that "currently affect pretty much most of our products," Chief Executive Tim Cook said on Apple's conference call. For the December quarter, the company continues to expect record sales.
Microsoft also admitted delivery bottlenecks when it released its first quarter results on Tuesday afternoon, but it also issued a personal computer forecast that slightly beat the consensus view.
"I believe the second quarter will also be a strong demand quarter that will be constrained by supply," CFO Amy Hood said on the conference call, although she still sees a "growing market".
Microsoft has gained ground this year, thanks to a 49% increase in its stock against Apple, compared to a 13% increase in Apple stock in 2021. The Dow Jones Industrial Average
both of which are components has increased by 17% over this period.