Arthur J. Villasanta – Fourth Estate Contributor
Redmond, WA, United States (4E) – Microsoft Corporation became the most valuable company in the world — albeit briefly — when its stock hit amarket cap of $815.8 billion compared to Apple’s $815.5 billion on Tuesday at Wall Street.
Not bad for a company that last became the world’s most valuable company in 2010. For Apple, however, its tanking market cap is another sign investors are becoming more leery of a company with a one trick pony, the 11 year-old Apple iPhone whose latest and priciest iterations are turning-off buyers big time.
There’s a good chance Microsoft will hold on to the most valuable company title Wednesday because the news is bad for Apple on the political front. President Donald Trump has announced his intention to slap the scheduled 25% tariffs on goods imported from China.
This new list includes the iPhones and Apple’s laptops. The new tariffs will take effect on Jan. 1, 2019.
Analysts said Microsoft’s resurrection is being driven by the continued strength in Microsoft’s cloud computing business. There’s also Microsoft’s newfound ability to avoid the disappointing earnings results and increased regulatory scrutiny currently plaguing its tech rivals.
Apple first passed Microsoft to become the world’s most valuable company in 2010. Today, however, Microsoft is growing because of its renewed focus on consumers and enterprise customers.
Under CEO Satya Nadella, Microsoft continues to concentrate on growing its cloud computing business. This focus has transformed Microsoft into one of the two dominant players in the cloud computing along with Amazon.
In contrast, Apple is beset by a never-ending wave of problems. It’s seen its stock plunge amid concerns about falling demand for the new lineup of pricey iPhones and its decision to stop making public unit sales for its iPhones.
Analysts said Microsoft doesn’t have to worry about its market flat-lining, which is what’s happening to the glutted smartphone market.
Microsoft’s huge strides that it has made in the Cloud space, which is more enterprise focused, according to analysts.
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