Just four months after Apple passed the $1 trillion mark, the iPhone maker has lost its lead as Wall Street’s most valuable company and is set to be replaced by Microsoft Corp.
Apple shares fell 1.77% in extended trade after US President Donald Trump told the Wall Street Journal that tariffs could be imposed on laptops and cellphones imported from China.
The loss wiped out the 1.35% gain in the official trading session and put Apple’s market value at $814 billion (roughly Rs. 57 lakh crores).
Microsoft shares fell 0.35% after hours to $106.10 (around Rs 7,500), also taking its market capitalization to $814 billion. Microsoft had rebounded more than 3% in Monday’s official trading session when the market saw large gains.
The market caps of both companies were calculated using outstanding shares reported in their latest 10-Q filings.
Trading after the bell is often volatile and lacks the volume typically seen in official trading sessions.
Tech stocks have been hurt in recent months by investor concerns about rising interest rates and the fallout from the U.S.-China trade dispute.
But Apple has suffered more than other Silicon Valley stalwarts, down 23% since the iPhone maker warned Nov. 1 that sales for the crucial holiday quarter were likely to miss Wall Street expectations.
Global smartphone demand has slowed in recent years, making it harder for Apple to grow revenue.
Apple’s market capitalization surpassed Microsoft’s in 2010 as the Windows software maker struggled with weak demand for personal computers, in part due to the smartphone explosion led by the iPhone.
Since Satya Nadella took over as CEO in 2014, Microsoft has reduced its reliance on Windows PC software and become a major player in cloud computing, second only to Amazon.com.
Thirty-three analysts recommend buying Microsoft shares, while only one has a negative rating and another a neutral rating, according to Refinitiv data.
© Thomson Reuters 2018
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