2024 Tech Showdown: Apple's Struggles and Microsoft's Rise – What It Means for Investors and the Tech World
Apple Faces Threat to World's Most Valuable Company Title as Microsoft Gains Momentum in 2024
Uh-oh! Apple might lose its crown as the world's most valuable company because its stock went down a bit. People are worried about iPhones not selling well, and Microsoft is catching up.
Apple's shares fell by 4% in 2024 because folks are unsure about people wanting iPhones. Last year, Apple's stock went up by 48%, but now it's not doing so great. Meanwhile, Microsoft went up by 2% this year after a big jump of 57% in 2023.
On Wednesday, Apple's stock dropped a bit, while Microsoft went up, making Apple less valuable. Right now, Apple is worth $2.866 trillion, and Microsoft is close at $2.837 trillion.
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Before, Apple was worth a lot more, hitting $3.081 trillion on Dec. 14. Microsoft's highest was $2.844 trillion on Nov. 28.
In China, iPhones aren't selling well. In the first week of 2024, sales dropped by 30%, says Jefferies analysts. Apple hoped to make a big splash with its Vision Pro mixed-reality headset launching on Feb. 2 in the U.S. But, UBS experts think it won't make much money for Apple in 2024.
Sometimes, Microsoft briefly became the most valuable company since 2018, like in 2021 when COVID-19 messed with iPhone supplies.
Both Apple and Microsoft seem pricey compared to how much they might earn. Apple's price compared to what it might earn in the future is 28 times higher than usual. Normally, it's 19. Microsoft is trading at 31 times higher, higher than its usual 24, according to LSEG data.
In November, Apple said it wouldn't earn as much as people thought during the holidays. Analysts think Apple will make 0.7% more money, around $117.9 billion, in the last part of the year. Microsoft might do better, with a 16% increase to $61.1 billion, thanks to its cloud business.
We have to wait until Feb. 1 for Apple's official news. Microsoft's report will come out soon after. Let's see what happens!
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