Apple Steps aside, Microsoft is now the World’s Most Valuable Company

Microsoft overtakes Apple to become the world’s most valuable publicly traded company. This follows Apple’s performance that missed expectations.

Apple’s market cap was recorded at around $2.46 trillion, or IDR 35,022.23 trillion (the exchange rate of 14,228 IDR per USD), at the close of Friday, October 29, 2021.

Meanwhile, Microsoft hit almost $2.49 trillion, or Rp 35,429.09 trillion. As a result of supply chain restrictions, Apple’s fourth-quarter financial earnings missed Wall Street expectations.

Although Apple CEO Tim Cook estimates a revenue gap of $6 billion, the company expects supply chain problems to worsen in the fourth quarter of this year. Despite the 47 percent year-on-year increase in iPhone sales, the figure fell short of analyst expectations.

As Yahoo Finance reported Saturday (10/30/2021), the company recorded only iPhone 13 sales in the fourth quarter. On Tuesday afternoon, Microsoft also acknowledged the supply restrictions.

However, the company expects an increase in personal computer products that easily exceeds expectations. Amy Hood, Microsoft’s Chief Financial Officer, described the second quarter as a period of strong demand that will be constrained by supply.

But the market continues to grow, she said. Microsoft’s fiscal first quarter revenue rose 22 percent year-on-year, beating analyst expectations. Apple was the first company to reach a market capitalization of US$1 trillion and US$2 trillion.

Last year, Apple surpassed Saudi Aramco as the world’s most valuable publicly traded company. Microsoft last outpaced Apple in 2020, when the Covid-19 pandemic crippled its supply chain.

However, a major update to Windows in more than five years put Microsoft above its $2 trillion market cap for the first time.

By 2021, Microsoft’s stock was up about 48 percent, while Apple’s stock was up about 13 percent.

Previously, the United States (US) or Wall Street stock market hit a record high again on Friday, October 29, 2021. Investors have seen disappointing results from the financial performances of large companies.

At the close of Wall Street trading, the S&P 500 closed at 4,605.38. The Dow Jones Industrial Average rose 89.08 points, or 0.25 percent, to 35,819.56. The Nasdaq index rose 0.33 percent to 15,498.39.

Three benchmark indices rose to hit record highs. S&P 500 and Nasdaq indices had their best months since November 2020.
This positive performance came despite weak third-quarter reports from two large-cap companies. Shares of Amazon fell 2.1 percent after the e-commerce giant announced earnings that fell short of expectations.

Apple shares fell 1.8 percent after the tech giant’s quarterly earnings tumbled amid larger-than-expected supply constraints on iPhone, iPad and Macs. This is the first time Apple’s revenue has missed Wall Street estimates since May 2017.

However, Microsoft shares rose 2.2 percent, surpassing Apple as the world’s largest listed company by market capitalization. Nike and Intel also posted solid performances for the Dow Jones index.
Stocks on Wall Street
Despite disappointing results from big-capital or big-tech companies, the stock market has smashed records amid solid earnings, even with global supply chain concerns.

About half of the S&P 500 reported quarterly results, and more than 80 percent beat earnings estimates from Wall Street analysts. S&P 500 companies are expected to increase their profits by 38.6 percent year-over-year.

“So far, it’s fair to say that the company has managed to manage this challenge effectively, certainly capitalizing on strong demand,” said Angelo Kourkafas, investment strategist at Edward Jones.

He added that these cost pressures will manifest as reduced revenues and potentially lower profit margins.
“However, to date, I think about half of S&P 500 companies report that profitability has been fairly resilient in the initial assessment due to strong demand and price strengths,” he said.

Shares of Exxon Mobil and Chevron rose on Friday this week after the energy giant beat earnings expectations. Meanwhile, Starbucks came under pressure after revenue from China did not meet expectations.

deal in Washington
On the other hand, the benchmark index average showed a positive performance in the fourth week and closed with a rise in October 2021. The Nasdaq Index rose 7.2 percent in October 2021.

The S&P 500 index rose 6.9%. The Dow Jones index rose 5.8 percent and recorded its best performance since March. The benchmark index displayed a positive performance throughout October and