Apple faces challenge from Microsoft for world’s most valuable company title

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Also Read: BlackRock to cut 3% of workforce, aims for larger employee strength by end of 2024 Microsoft has briefly taken the lead over Apple as the most valuable company a handful of times since 2018. Most recently in 2021, it overtook Apple when concerns about supply chain shortages related to the COVID-19 pandemic hit the iPhone maker's stock price. Analysts believe both tech stocks look relatively expensive in terms of price to their expected earnings.

Apple is trading at a forward PE of 28, well above its average of 19 over the past 10 years, according to LSEG data. Microsoft is trading around 31 times forward earnings, above its 10-year average of 24, Reuters reported. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Apple has been facing a slowdown in iPhone demand in China as the sales dropped 30% in the first week of 2024, amid signs of growing competitive pressures from Huawei and other domestic rivals, as per reports.

In its quarterly report in November, Apple gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables. Also Read: Amazon to lay off hundreds of employees in Prime Video, MGM Studios Analysts expect Apple to see revenue growth of 0.7% to $117.9 billion for the December quarter, according to LSEG. That would mark its first year-on-year revenue increase in four quarters.

Apple will report its results on February 1. Microsoft is estimated to report a 16% increase in revenue to $61.1 billion, lifted by ongoing growth in its cloud business when it reports in the coming weeks. Catch Live Market Updates here (With inputs from Reuters)