Microsoft’s stock market value is on the verge of taking over Apple, since the iPhone maker breached its $1 trillion market cap and lost its lead as the ‘most valuable company’ in the Wall Street. Shares of Apple dropped 1.77 percent in extended trade after US President Donald Trump told Wall Street that tariffs can be imposed on mobile phones and laptops imported from China. The loss took away 1.35 percent earned during the official trading session, sending the company’s stock market value to $814 billion, as reported in Reuters.
In after-hours trading, Microsoft shares fell 0.35 percent to $106.10, corresponding its market capitalization to Apple at $814 billion. Microsoft had climbed over 3 percent at official trading session on Monday, when the market registered broad gains.
According to the Reuters news, the market values of both the companies were calculated using outstanding shares reported in their latest 10-Q fillings. After-hours trading is often volatile and deprived of volume usually seen in the official trading session. Shares of big technology companies have been challenged in the recent months amid growing interest rates and rising trade conflicts between China and the United States.
But the iPhone maker has suffered more than any other companies in the Silicon Valley, plunged 23 percent, since Apple warned its sales may miss the Wall Street expectations during the crucial holiday quarter. According to recent reports, Apple has resumed its iPhone X production after the weak sales of iPhone XS and will no longer reveal the sales of their product line including iPhone, iPads, Mac which will be difficult for analysts to predict the sales performance in the future.
It has also been difficult for Apple to increase its revenue as the demand for smartphones across the globe has slowed in the recent years. Eight years ago, Apple’s stock market value overtook Microsoft’s, as the Windows software maker suffered a slow demand for personal computers due to penetration of smartphones, led by iPhones. Since Satya Nadella took over as CEO of Microsoft in 2014, the company shifted its focus from Windows software for PCs and became leading player of the cloud computing and has even made big gains against its primary rival Amazon.com.
According to Refinitiv data, 33 analysts recommend to purchase Microsoft’s stock, only one had a negative rating and another had neutral rating.