Clash of the Titans: Microsoft Edges Closer to Apple’s Throne

<p>In the perpetual game of corporate one-upmanship, Microsoft is slyly
inching towards dethroning Apple as the world's most valuable company. </p><p>How? Well, it all follows a recent stumble in <a href="https://www.financemagnates.com/tag/apple/">tech giant</a> Apple's stock
prompted by anxiety over iPhone sales. A familiar tale? Microsoft, increasingly
benefiting from its <a href="https://www.financemagnates.com/tag/microsoft/">cloud
and corporate business</a>, seems to think so.</p><p>Stock Dances and Market Jousts</p><p>Apple's shares have taken a <a href="https://www.reuters.com/technology/microsoft-challenges-apple-worlds-most-valuable-company-2024-01-10/">4%
dip in 2024 after a triumphant 48% surge last year</a>. In stark contrast,
Microsoft’s stocks are on the rise, up 2% this year after an even more impressive
57% surge in 2023. On Wednesday, Apple's shares wobbled by 0.4%, Microsoft rose
by 1.6%, narrowing the valuation gap between the two tech behemoths. Apple’s
market value currently hovers at $2.866 trillion, with Microsoft hot on its
trail at $2.837 trillion.</p><p>China's iPhone Woes and Corporate Thrusts</p><p>China poses a headache for Apple as iPhone sales plummeted by 30% in
early 2024, hinting at fierce competition from alternatives including Huawei.
Meanwhile, Apple preps for the grand reveal of its Vision Pro mixed-reality
headset on February 2, with Microsoft observing closely. <a href="https://www.marketscreener.com/quote/stock/APPLE-INC-4849/news/APPLE-INC-UBS-remains-Neutral-45694935/" target="_blank" rel="nofollow">A report from UBS</a>,
however, predicts that the device’s impact on Apple’s earnings per share will
be “relatively immaterial” in 2024.</p><blockquote><p lang="en" dir="ltr">Microsoft challenges Apple as world's most valuable company <a href="https://t.co/LB5DgkGMLb">https://t.co/LB5DgkGMLb</a> <a href="https://t.co/pU3gh5yisl">pic.twitter.com/pU3gh5yisl</a></p>— Reuters (@Reuters) <a href="https://twitter.com/Reuters/status/1745162520195666249?ref_src=twsrc%5Etfw">January 10, 2024</a></blockquote><p>A Recurring Rivalry</p><p>Microsoft has teased Apple before, briefly snatching the title of the
most valuable company in 2021 amid <a href="https://www.financemagnates.com/terms/c/coronavirus/">Coronavirus</a> supply chain disruptions. The
question lingers: can history repeat itself?</p><p>Pricing Peaks and Expectation Games</p><p>Both tech giants play the pricing game, with Apple's forward PE at 28,
soaring above its 10-year average of 19. Microsoft, not to be outdone, trades
around 31 times forward earnings, surpassing its 10-year average of 24. A risky
gamble? Perhaps, but in the high-stakes world of tech, these titans play for
keeps.</p><p>Revenue Reports and Crystal Balls</p><p>Apple's recent sales forecast for the holiday quarter fell short of
Wall Street’s expectations, predicting a meager 0.7% revenue increase to $117.9
billion. On the flip side, analysts predict a robust 16% revenue boost for
Microsoft, reaching $61.1 billion, driven by relentless growth in its <a href="https://www.financemagnates.com/terms/c/cloud/">cloud</a>
business. As the corporate saga unfolds, stay tuned for the climax when both
giants unveil their financial cards in the coming weeks.</p><p>This news comes not long after Apple’s CEO Tim Cook revealed that he
hopes to <a href="https://www.financemagnates.com/trending/apples-tim-cook-talks-succession-plans/">remain
in post for some time yet</a>.</p>

This article was written by Louis Parks at www.financemagnates.com.