Microsoft Market Cap Beats Apple, at Least for Now
If you're looking for a tech stock with longevity, Microsoft is hard to beat. It's been a contender for the most valuable company in America for decades. In recent years, the top spot tends to alternate between Microsoft and Apple, and MSFT recently took back the trophy. Discover some reasons why below.
Apple's Supply Chain Issues Are Staggering
Despite some bumps in AAPL prices associated with hype around the company's latest product announcements, Apple's stock took a hit due to supply chain issues. The company has been fairly open about some of the challenges and the fact that certain items are on back order. Even the $19 cleaning cloth Apple recently unveiled is out of stock for months, so the issues aren't solely tied to chip-based tech. Worries that supply chain woes may impact customer service, sales and revenue are causing analysts and investors to take a more bearish stance on AAPL than they might otherwise.
Microsoft Is More Tied to Cloud & Software
Microsoft, on the other hand, isn't as challenged by the currently slow supply chain. Many of its products are cloud and software based. Most people aren't worried about Microsoft's ability to deliver products or drive revenue, which means less hesitancy from investors.
The Pandemic Played to Microsoft Strengths
The pandemic actually allowed Microsoft to shine. As more enterprises and individuals looked to digital environments for production, personal connections and even social events, cloud services became even more critical than they already were. As Microsoft's product lineup is heavily download- and cloud-based, it was able to meet new needs during the pandemic. Which is one big factor in a stock price that rose from around $212 in mid-January 2021 to more than $330 in November 2021.
Will Microsoft reign long in the top spot? Historically, Apple takes the spot back when consumer revenues are the prevailing financial winds. And there are a few other companies edging ever closer, keeping the show interesting for investors.
