Washington, Oct. 28 (BUS): A rally in Microsoft shares nearly beat Apple as the world’s most valuable company on Wednesday, a day before the iPhone maker announced its quarterly results.
Shares of Microsoft, driven by strong quarterly growth in the Azure cloud computing business, jumped 4.2% to close at a record $323.17, taking the software maker’s market value to $2.426 trillion, just below Apple’s $2.461 trillion valuation.
Apple shares fell 0.3% ahead of its post-bell report on Thursday, as investors focused on how the global supply chain crisis is challenging the company’s ability to meet demand for its iPhones.
Microsoft’s stock is up 45% this year, as pandemic-driven demand for its cloud-based services drive sales. Apple shares are up 12% in 2021.
Apple’s stock market capitalization surpassed that of Microsoft in 2010 as the iPhone made it the world’s leading company in consumer technology. The two companies have traded in their roles as the most valuable company on Wall Street in recent years, with Apple retaining the title since mid-2020.
In its report late Tuesday, Microsoft predicted a strong end to the calendar year thanks to its booming cloud business, but warned that supply chain problems will continue to hamper major units, such as those that produce Surface laptops and Xbox game consoles.
Analysts, on average, expect Apple to report September quarter revenue up 31% to $84.8 billion and adjusted earnings per share of $1.24, according to Refinitiv.
MI