1. Apple is worth $540 billion less than Microsoft, which is equivalent to Tesla’s market value.
2. Apple shares are down 11% this year, while Microsoft shares are up 14%.
3. Apple is facing growth concerns and regulatory fights, while Microsoft is benefiting from AI advancements.
Apple is currently worth $540 billion less than Microsoft, with the iPhone maker’s shares down 11% this year and Microsoft’s up 14%. Apple is facing growth concerns and regulatory issues, while Microsoft is thriving on artificial intelligence advancements. At the end of 2023, Apple was the most valuable public company, but now has fallen behind Microsoft significantly.
The gap in market value between Apple and Microsoft reflects the difference in their stock performance this year, with Apple struggling while Microsoft is thriving. Apple has faced challenges including skepticism about its new Vision Pro headset, a slowdown in China sales, and fines from EU regulators for market dominance abuse. Microsoft, on the other hand, has seen stock surge due to excitement about its involvement in artificial intelligence and cloud services.
Microsoft’s CEO, Satya Nadella, has seen the company grow significantly in revenue and net income, with revenues rising 15% and net income jumping 30% in the six months leading up to December. In comparison, Apple’s revenues and net income saw a decrease in its 2023 annual report. While Apple may have the potential to close the gap and surpass Microsoft in the future, for now, there is a significant difference between the two tech giants.