(MENAFN- KNN India) New Delhi, Jan 12 (KNN) Microsoft becomes the world's most valuable company, surpassing Apple, as iPhone sales concerns lead to a decline in Apple's stock.
Microsoft's market valuation reaches USD 2.875 trillion with a 1.6 per cent increase, while Apple's market cap drops to USD 2.871 trillion, the first time it's fallen below Microsoft since 2021.
Analysts attribute Microsoft's success to its faster growth and greater benefits from the generative AI revolution.
Apple faces challenges in China and a downgrade in ratings, impacting iPhone sales and the scrutiny of its deal with Google as the default search engine on iOS.
Microsoft's aggressive rollout of genAI-powered tools in 2023 contributes to its 57 per cent rise compared to Apple's 48 per cent gain in the previous year.
Wall Street is more positive on Microsoft, with no "sell" ratings, while Apple has two "sell" ratings.
Both companies appear relatively expensive in terms of price to expected earnings, with Apple trading at a forward PE of 28 and Microsoft at around 31.
(KNN Bureau)
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