Microsoft’s shares edged higher Thursday morning, bringing its market value to nearly $2.87 trillion.
Apple, meanwhile, fell 1%, pulling its market capitalization just below that threshold. Either Apple or Microsoft has held the title since Feb. 4, 2019, according to Dow Jones Market Data.
Microsoft’s stock has been on the rise for the past year thanks to the continued growth of its cloud computing division, even as major competitors like Amazon and Google have experienced a gradual slowdown in sales growth.
Microsoft shares have benefited from optimism that artificial intelligence will trigger a surge in new revenue for its software business, thanks in part to its large investment in startup OpenAI last January.
Microsoft’s revenue is projected to reach about $61 billion in its most recent quarter, which ended in December. That would mark growth of about 16% from a year earlier.
Apple became the first company whose market value crossed the $3 trillion threshold last year, before the stock pulled back. Following a year of disappointing results and flagging sales, investors and analysts are worried demand isn’t going to pick up much in 2024.
Wall Street expects $118 billion in sales for the quarter that ended in December, or less than 1% growth from a year earlier.
Microsoft shares have advanced 64% over the past year, while Apple’s are up 38%. Their rise has helped power the broader market; the two comprise about 14% of the market-value-weighted S&P 500, which has gained 20% over the same period.
Both tech giants are expected to report results in the coming weeks.
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