Microsoft has become the most expensive public company in the world
Microsoft’s (MSFT) capitalization exceeded Apple’s market value. Microsoft securities rose thanks to solid reporting over the last quarter, and Apple’s stock price fell. Shares of Microsoft software developers rose 1.1% to $327.88 in early trading on the New York Stock Exchange.
The company’s market value rose to $2.46 trillion, surpassing Apple in capitalization. As a result, Microsoft became the most expensive public company in the world. On Friday, Apple shares fell 3.9% to $146.65. There were sales in the securities after the report’s release for the fourth quarter, the results of which were worse than analysts’ expectations.
As a result, the capitalization of the iPhone manufacturer dropped to $ 2.41 trillion. On the other hand, Microsoft has become the most expensive company globally, thanks to a 50% increase this year compared to a 13.6% increase in Apple’s share price.
According to Marketwatch estimates, the iPhone manufacturer has been in first place for 16 months – since the beginning of July 2020. Moreover, in June of this year, the capitalization of the Microsoft software developer exceeded $2 trillion for the first time.
It became the third company in the world to achieve such an indicator, after Apple and the Saudi Aramco oil company. On the other hand, it took Microsoft 35 years from the date of the IPO for its value to break the $2 trillion mark.
This week, Microsoft reported a record profit for the last quarter of $20.5 billion. In July — September, it grew by 48%. In addition, Microsoft’s revenue for the quarter increased by 22% to $45.3 billion. The company predicts strong results this year thanks to its rapidly growing cloud business.
However, the company warned that problems with the supply chain of components would continue to affect the work of key divisions, including the production of Surface laptops and Xbox game consoles. Nevertheless, most analysts surveyed by Refinitiv expect further growth of the company’s shares: 40 analysts recommend buying, two recommend holding.
The consensus forecast for the next 12 months for Microsoft securities is $355, which implies a growth potential of about 8.6% from current levels. The most significant increase in deposits by Citi analysts, who predict a price increase to $407 per share, by another 26% in the coming year.
