In a recent development, Apple may lose its position as the world’s most valuable business to Microsoft as a result of a recent drop in its shares, which has been fueled by fears about iPhone sales.
Apple’s stock has dropped 4% in 2024 after a significant 48% rise the previous year, while Microsoft’s stock has risen 2% year to year after a phenomenal 57% rise in 2023.
Apple’s market capitalization is at $2.866 trillion, slightly ahead of Microsoft’s $2.837 trillion, with the former facing difficulties in iPhone sales, particularly recording a 30% dip in China during the first week of 2024.
Despite the anticipated February 2 release of Apple’s Vision Pro mixed-reality headset, analysts expect very modest contributions to Apple’s earnings per share in 2024.
Based on their price-to-earnings ratios, both firms’ stocks appear rather pricey, with Apple’s forward PE at 28, over its 10-year average of 19, and Microsoft selling at roughly 31 times ahead profits, exceeding its 10-year average of 24.
Apple’s recent Christmas quarter sales projection fell short of Wall Street expectations, while analysts predict Microsoft to announce a 16% revenue gain to $61.1 billion, mostly due to strong development in its cloud business.
