Apple Stock Staggers To Worst Day In 7 Months As Microsoft Hits All-Time High – Forbes
The gap between the world’s most valuable companies widened Thursday, as Apple shares took a tumble and Microsoft leapt to a record high share price.
Apple CEO Tim Cook, center, outside of Apple’s biggest store in New York City.
Apple suffered its biggest single-day stock loss since Aug. 4 on Thursday, dropping 4% to $171 as investors reacted to the Department of Justice’s announcement of a wide-sweeping antitrust case against the company for allegedly stifling competition among other smartphone makers and the hefty revenues it takes for third-party transactions on its devices.
The plunge wiped out $112 billion in market value for Apple, sending its market capitalization to $2.6 trillion, still the second-highest in the world.
That puts Apple’s valuation some $544 billion behind Microsoft’s $3.2 trillion, a remarkable gap considering Apple was $200 billion bigger than Microsoft at the end of 2022 and more than $500 billion larger than Microsoft last summer.
Microsoft’s stock gained 1% in Thursday trading, closing at a record $429 share price, enjoying the effects of a broader rally and an apparent boost from its unveiling of its first generative artificial intelligence-focused computers.
Apple, which was the world’s most valuable company for most of 2018 until losing its crown to Microsoft in January, is now closer to being the third-most valuable company on Earth than the first. Apple is about $360 billion more valuable than AI darling and semiconductor chip titan Nvidia, a slim lead considering Apple’s market cap outranked Nvidia’s by about $1.7 trillion at the end of last year.
The changing of the guard among the world’s biggest companies partially reflects the market’s obsession with AI. Microsoft, which owns a sizeable stake in ChatGPT parent OpenAI in addition to its own machine learning undertakings, and Nvidia, which is the top producer of the semiconductor technology needed to power generative AI, are considered among the top AI names, while Apple has yet to roll out any generative AI offerings. Apple’s 11% year-to-date loss is worse than the S&P 500’s 10% return.
Stock indexes reached record highs Thursday despite Apple’s slide. The Dow Jones Industrial Average, S&P and tech-heavy Nasdaq were each in the green as equities continued their rally as monetary conditions look ready to ease.
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