Microsoft Dethrones Apple as Most Valuable Company in U.S

Microsoft Corporation has once again become the most valuable company in the U.S. The software giant’s market cap has crossed $2.49 trillion and crossed Apple Inc. for the first time since July 2020. 

The company’s earnings report was another reason why its stocks grew this week. On the other hand, Apple announced that supply-chain challenges are responsible for impacting product manufacturing. Besides, these issues are likely to heighten during the holiday season in the last quarter. 

July 2020 was the last time Microsoft had a higher market cap than Apple. 

SEE ALSO: Mircosoft Acquires OKR Startup to Strengthen its Productivity Software Offering

Has remote working and schooling fueled Microsoft’s recent growth?

Tech companies such as Microsoft and alike have largely benefited from the increasing shift to work from home and remote schooling during the pandemic. Microsoft’s increasing focus on cloud computing has become a key driver to the firm’s bottom line. 

Today, Microsoft has around 20% share in the global cloud computing market according to Gartner. This makes it the second-largest company in the world, following the trails of Inc, which enjoys a market share of 40%. 

The last time Microsoft had an extended run as the world’s most valuable tech company was in the early 2000s. At that point, Microsoft’s business consisted of a full suite of Office applications and Windows Operating systems. 

Microsoft’ strategy

As mentioned earlier, cloud computing business and Office productivity software subscriptions were the main revenue-generating streams. These two streams have remained very important to investors. 

In addition, Microsoft has done an amazing job of binding together its ecosystem to create lock-in. This strategy is very similar to that deployed by Apple on the iPhone. While iMessages, music subscriptions, and iCloud are revenue drivers for Apple, Azure, Microsoft Teams, Power BI, and Word have been that for Microsoft. 

Microsoft’s growth can be attributed to the leadership of its current CEO, Satya Nadella. Microsoft’s market cap crossed $2 trillion in June 2021 after it surpassed the $1 trillion mark in April 2019. 

At present, Apple and Microsoft are the only companies with market caps of more than $2 trillion. 

SEE ALSO: Microsoft Will Launch Windows 11 on October 5th

Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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