For the first time in years, Apple Inc. gave up its crown as the world's most valuable publicly traded company on Monday.
Shares of the iPhone maker has dropped sharply over the past several weeks, and the decline has been eroded about $ 300 billion in the market capitalization from the company, which started on October 1, beginning of $ 1.1 trillion in a record value. The slump took the company's market cap briefly below that of Microsoft Corp.'s on Monday, the first time in more than eight years that Microsoft was worth more by this metric. It was also the first time since 2013 that any company topped it, ever since Apple eclipsed Exxon Mobil Corp. in size, according to an analysis of Bloomberg data
Apple's Market Cap 1 rank, closing at $ 828.64 billion as of 4:05 p.m. in New York, while Microsoft's stood at $ 822.90 billion after the two hours spent on the top seat. Shares of Apple rose 1.4 percent, erasing an earlier fall, while Microsoft climbed 3.3 percent.
Apple and Microsoft have had one of the most staired rivalries in Silicon Valley, one that goes back to the mid-1970s, when both were established in one year of each other and focusing on making breakthroughs in developing personal computers Microsoft dominated in the dot-com era but later lost ground as the Cupertino, California-based Apple launched such iconic products as the iPod and specially the iPhone, which would grow its most important product line.
Yet now, that is the product that is facing the challenges facing Apple, with concerns over weak iPhone demand pressuring shares to fall 25 percent from record levels.
Microsoft is not immune to weakness in the technology sector, although the Redmond, Washington-based company has held up more than 8 percent from its own-high of October as investors take its enterprise-oriented business, as well as the success of its cloud-computing division
While Apple analysts see it transitioning to a business model based on the sales, there was more pain than for the stock, which could dethrone it from the number one spot in a more decisive fashion.
According to Rich Ross, a technical analyst at Evercore ISI, Apple's stock "has another 18 percent downside," which could take the stock to $ 140, its 200-week moving average. "It is not bullish when the biggest stock in the world is in 'falling knife' mode," he wrote to clients on Monday.
Based on Apple's Friday close, an 18 percent drop would give a market cap of about $ 670 billion. That would put it both down on Amazon.com Inc., currently valued about $ 773 billion, and Google-parent Alphabet Inc., which has a market cap of about $ 732 billion
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