Reuters reports that a certain tech company now holds the title of the world’s most valuable tech company, surpassing another company in stock market value. This shift occurred as concerns about smartphone demand impacted the shares of the other company, allowing the first company to claim the top spot for the first time since 2021.
The first company saw a slight increase of 0.2%, whereas the second company gained 1%. This pushed the first company’s market capitalization to a record $2.887 trillion, as reported by LSEG (London Stock Exchange Group) data. In comparison, the second company’s market capitalization was $2.875 trillion.
Concerns about a decline in smartphone demand have led to a 3% drop in the second company’s shares in 2024, following a 48% increase the previous year. Meanwhile, the first company has seen a 3% uptick this year, building on a remarkable 57% surge in 2023. This boost was fueled, in part, by the first company’s leadership in generative artificial intelligence, including an investment in a certain AI company, the creator of something.
The first company adding the AI company’s tech to its productivity software gave a boost to its cloud-computing business. Plus, being a leader in AI sets the first company up to take on another company’s rule in web search.
Meanwhile, the second company is facing a slowdown in demand, especially for a certain product, a significant revenue source. Demand in a key market for the company has dropped as the country’s economy gradually recovers from the impact of the COVID-19 pandemic. Adding to the challenge, the resurgence of another company is eroding the company’s market share in the region.
Despite the upcoming launch of a certain product on a specific date, analysts project its impact on earnings per share in 2024 to be relatively minimal.
This isn’t the first time the first company has outpaced the second company in value; it happened in 2021, too, due to supply chain issues during the pandemic. The second company also revealed in a recent report that holiday sales might not meet expectations, mainly because fewer people buy specific products. The competition between the first and second company is always changing, and right now, the first company is leading the way.
