Maybe, Apple began the year of 2024 on the wrong foot. Perhaps, they did not watch the fireworks or followed a feng shui advice for some lucky charms because Microsoft just replaced them briefly as the most valuable company in the world just this Thursday, January 12, 2024.

 

Rivalry in Numbers Continues

 

Report says that Apple was 0.9% lower with a market capitalization of $2.871 trillion while Microsoft was up last night by 1.6% giving it a market valuation of $2.875 trillion – the last time something like this happened was in 2021 with both of them going neck and neck, mainly due to concerns about COVID-driven supply chain shortages hit Apple’s stock price, though Microsoft already did this handful of times in 2018.

 

Why do you think Microsoft is going up?

 

Of course it’s because of the generative AI revolution, people saw it coming. 

 

This innovation is driving the numbers of investors for Microsoft, so were we surprised when the overtake happened last night? Of course not. 

 

And in case you’re surprised that Apple stocks did dip, it’s because a series of rating downgrades has been increased with the sales of iphone would stay weak in China, its major market.

 

Do you think the reason why Apple might be losing its battle with Microsoft is because it takes them too long to innovate? It’s evident that they have been largely left out of the AI fervor. Unlike Microsoft that released their improvements and has invested big in the future AI development and brings a new twist to the decades-long rivalry between the two tech companies. The excitement alone of investors about this tech wave might have fuelled a rally in the shares of Microsoft, but will it continue to do so?

 

Though this did not last long, it sure brought a challenge to the iPhone maker, now they have something to worry about for the rest of the year because if their stock dips another time and the other tech company increase in percentage, then Microsoft might just settle at the top and completely take over their place in the market. 

 

Not to mention that Wall Street is more positive on Microsoft with no “sell” rating and nearly 90% of the brokerages covering the company recommend buying its stock. 

 

Apple on the other hand has two “sell” ratings and only two-thirds of the analysts covering the company rate it as a “buy”.

 

Temporary tough time?

 

The iPhone maker might just be having a tough time for a short time. According to reports, Foxconn, one of its biggest manufacturing partners has seen its year-on-year revenue decline, but the big tech company is gearing up to launch their next big product which is the VisionPro that is expected to launch this coming February. Will this become Apple’s breakthrough to bounce back and retain their position as the most valuable company? 

We will leave that up to the near future, and how these two big tech companies will handle this strong rivalry. The intricate interplay of market forces, technological advancements, and strategic decisions will undoubtedly play a pivotal role in determining the trajectory of their competition. These giants will obviously continue to jostle while we continue to watch as they unfold the unlimited possibilities in the digital world.