What happens when Apple passes Microsoft in market value?

Apple Online Store“Apple’s stock [was] up over $3 [Friday] pushing it past the $230-a-share mark. Microsoft’s is down $0.25, pushing it below the $30-a-share mark. While this discrepancy is huge on the surface, it doesn’t mean all that much because there are many, many more outstanding shares of Microsoft stock out there on the market (ten times more, in fact). That’s why Microsoft’s market cap is higher than Apple’s, despite the individual stock price difference,” TechCrunch blogs via Seeking Alpha. “But that market cap gap is closing. Quickly.”

“Apple looks poised to get within $50 billion of Microsoft market cap any day now,” TechCrunch writes. “Currently, Apple’s market cap is $208.76 billion, while Microsoft’s is $261.01 billion. And while $50 billion may seem like a huge chasm, consider that since December 31, 2009, just a few months ago, Apple has added about $20 billion to its market cap, while Microsoft has lost about $10 billion. Again, the gap is closing, quickly.”

“At $300-a-share, assuming the number of shares remains fairly constant, Apple would be worth $270 billion. Yes, ahead of Microsoft (assuming their market cap remains the same over that time),” TechCrunch writes. “If that happens (and again, I venture to say it will happen), Apple fanboys will go through the roof… Here’s the real problem for Microsoft, though. If Apple does in fact pass Microsoft in market cap, I can see CEO Steve Ballmer losing it, and that could steal his focus away from what should still be considered his real enemy: Google.”

Full article here.

MacDailyNews Take: The answer to the headline is, of course: Party!

61 Comments

  1. There will be a brief period where Apple passes MS but it won’t last long – initially. Perhaps one party that first time but a really big party after a month with a bigger cap.

  2. I have a special bottle tucked away for that very day. Hurry up AAPL. Also if it reaches 300 that’ll finance my next iMacs and MBP’s. What’s not to love about this.

  3. The ground will shake… and from the dark tower in Redmond there will come a hailstorm of office furniture…! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. “Apple’s stock [was] up over $3 [Friday] pushing it past the $230-a-share mark. Microsoft’s is down $0.25, pushing it below the $30-a-share mark. While this discrepancy is huge on the surface, it doesn’t mean all that much because there are many, many more outstanding shares of Microsoft stock out there on the market (ten times more, in fact). That’s why Microsoft’s market cap is higher than Apple’s, despite the individual stock price difference,”

    Wow, that’s complex math.
    Stating the obvious.

    But I do feel the excitement coming, like when you’re preparing the party!

  5. So potentially Balmer will focus on Apple rather than Google? Even if that were true, so what? Surely that’s only of benefit to Apple with Balmer’s track record.

  6. And I’m bummed out, found out yesterday I have a friend flying down to Mexico on the 10th. I had planned on ordering an iPad to be delivered to him , when I got home, found out it would now be an April 12 delivery 🙁

  7. Wow. Now you seriously delusional MAC sheep can officially be declared insane. Leave the manufactured fear and outright falsehoods to the Republicants.

    Bing, Zune and Windows Phone 7 have you crybabies crapping your pants. Will overpriced and proprietary MAC pass Microsoft in anything? Hell No! They still can’t ship a two-button mouse. If I were one of you MAC cultists I would question why MAC doesn’t license Windows. It’s their last chance.

    Your potential. Our passion.™

  8. Apple should replace Micosoft on the Dow.

    The Tech sector has never particularly been favored in the Dow industrials, however, when you consider Apple is worth more than many of the existing members, the Dow should realize Technology is the future and Apple is its name!

  9. With the overwhelming order response to the iPad revolution, continuing inroads in computers, then iAd about to melt down Google, and likely whole new approach to television waiting in the wings, Apple won’t just blow past microsoft’s market cap, it will be bigger than Exxon.

  10. Sad.
    Soon the struggling for becoming one of the biggest (the biggest) will be over. It’s really nearing now.
    That’s why reading Zune Tangs’ comments was so amusing.
    Now it’ becoming more and more pathetic.
    Will we ever feel nostalgic about the time we had only a small amount of market share et al?

  11. I love it when the MS faithful lash out in fear when their precious crown is threatened. I invite them to posture all they can. Their braying doesn’t change the numbers. But the two button mouse arguement was VERY stinging. I don’t know how I’ll manage to go on with an interface that only ever needed one button on a mouse. Perhaps Apple can copy the two button mouse like when they copied the Zune and called it an iPod? But wait. Didn’t Apple have a GUI and mouse BEFORE Microsoft?

  12. I don’t know how these things work, really. But this is what I have observed:
    It seems that the determinant of how well the stock does is not how well a company performs, but how well it performs compared with the predictions of market analysts and whether it projects better performance than analysts expect it to on quarterly announcements. Apple has generally projected conservatively. Whenever they have a new product, they seem to be even more conservative.
    The stock took a hit after iPhone came out because of its conservative projections, but then recovered as Apple consistently did better then expected. Then it took a hit when the economy turned negative simply because everyone thought Apple would not be able to meet expectations, but it did better than that so it recovered and is peaking now.
    So, my hunch is Apple will begin to project more conservatively again now that the iPad is coming out. With everyone predicting it’s going to be a big hit, that conservative projection is likely to contrast badly with market expectations and the stock will take a hit. It will take a year for the stock to get back to where it is now.
    That’s about all of my amateurish financial deductive reasoning can do. Buy when the stock dips, because it will peak again.

  13. @aaplause
    I’m sure we will be a bit nostalgic… when we were a small but fine community around the mac… It was great, when you found another mac-guy and had a chat about the greatness of multitasking ability. But then there was also a lot of frustration, especially the windows95 time was pain…

  14. Apples Market Cap will NEVER pass Microsofts. The only reason Apples stock price has jumped so much is over anticipation the iPad will be a big hit.

    After impressive pre-orders, the iPad will have disappointing numbers because once the fan-boys are finished with the first round of sales, most will realize that there is no real market for this thing. If you have an iphone or a netbook/laptop you simply don’t need it.

    The article also uses false logic, that Microsoft’s stock will just sit there at the same value. Windows 7 sales have been impressive, and they have products coming to market that will move their stock price higher (including Project Nadal for the Xbox, and their own slate computing device – i.e. “Courier” which looks like a slate device people actually might get some use out of).

    On top of everything else, PC manufacturers are releasing a dozen slate PC’s this year with most running some form of Windows 7. the iTampon is not the only game in town.

  15. @ Zune Tang®,

    ” Leave the manufactured fear and outright falsehoods to the Republicants.”

    Uh-oh, betcha John Boehner will declare you a “dead man”. Look for the tea bagger mob to show up in your home town any minute. Gotta love all of those “patriots”.

  16. @ Zune Tang and Sir Gill Bates

    No one knows fear, falsehoods, serious delusions and insanity like the Demoncrats; it’s their stock and trade! Gotta love all those psycho socialists who want to “take over” what others have created.

    Ballmer T. Clown…may he remain in charge as long as it takes!

  17. As soon as Apple gets close enough, Microsoft will stop paying dividends and stop this nonsense in it’s tracks.

    Of course, as soon as the dividends stop, Microsoft’s stock will tank anyway.

  18. Have you noticed how many, many, many, many, many (you get the point) more ‘fanboys’ there are nowadays. Kinda makes you wonder. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  19. Ballmer will run to his Uncle Billy crying” they cheated, they cheated”. Uncle Billy, with a look of derision on his wimpy face ” monkey boy, you are not of my seed, you have destroyed us. Leave this lakeside kingdom and leave your Zune with my secretary”.

  20. Thanks zunetang. I thought you were so busy with windows 7 and your netbooks that you wouldn’t have time to troll sites you hate. And now you bring politics into your rants. Wow. Come on , own up and comemout the closet.

    Question. How will you disparage a product if you never use them?

  21. Steve Jobs is a liberal, supports Democrats and is a FOB. He used to let the Clintons stay at his house when visiting their daughter @ Stanford.
    None of this is in dispute. How do you like that?

  22. How many macs do you really own??? Truth! We know your posts are all tongue in cheek… I own 5, in a 3 person house plus 2 iPhones… 1itouch…. 4ipods.. And 1 ipad on Saturday…

    I am sure you have me beat….

  23. So Ballmer will focus on Apple rather than Google.
    So what exactly will he do other than . . . focus?
    I hope Zune Tang® is is preparing his response now. This should be one of his best, I’m looking forward to it. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  24. @@doc e

    I could care less about Jobs’ politics as long as he keeps releasing good products. Anyways, Obama made his decision in the Apple/MS battle when he invited Ballmer to the White House, twice, to discuss how to make gov tech more “efficient.” Oh, the irony.

  25. I thought Obama’s staff was supposed to be Apple oriented from what some were saying around election time.

    When I heard about Obama inviting Ballmer to the White House I was shocked, esp. after Monkey Boy’s threats:
    http://boycottnovell.com/2009/06/04/ballmer-blackmails-obama/

    Anyone seriously interested in the future of computing would be inviting Steve Jobs to the White House. Has Obama been oblivious to what innovation is in the Tech sector and who’s actually doing it? I thought he was at least smarter than that.

  26. [Does ms not have 20% share in Apple from when Apple almost went under?]

    No.

    If you were a ‘machead’, then you’d know the answer.

    M$ had to pay Apple an undisclosed amount (rumor of $800M+) for ripping off QuickTime code.

    And at the same time had to pay Apple $150M to reprint MacOS8 boxes and repress MacOS8 CDs, because they wanted Apple to make IE the default browser.

    Somewhere in America, there’s a landfill filled with MacOS8 boxes that read, and CDs that install Netscape by default.

  27. You know you are all very weird people you Macs & PCs fanboys. There was some fun on the discussions about what is best, but lately my computers are just great machines with different advantages and limitations. And I have 2 Macs, an iPod Touch and 1 PC that I builded myself, so I have a certain preference for my Macs. But what can I tell you, I love them all and I only wish all of them will get better with time. I would not dare to bet on any brand going down and even loosing its market completely. And yes I cant stand Steve Ballmer but I almost never read about Steve Jobs anyway. I want to upgrade to Windows 7 but Xp is still working very well.
    So ok, you all have some fun but I the radicalization is getting very old (is this any new religion?). Believe me, I read from both sides on manny different websites and I just try to ignore the intensity and sometimes the insanity. But from time to time I try to do something. So I hope my comment wont offend anyone here and there and really cool down and don’t be surprised if Microsoft and Apple have better relationships than you think, at least on the personal level because a lot of this is just marketing campaigns.

  28. “The only reason Apples stock price has jumped so much is over anticipation the iPad will be a big hit.”

    Hmm… Could Apple’s recent string of fantastic quarter reports where each one is their best yet also have something to do with their stocks going up ? Nah. That’s too far fatched.

    “If you have an iphone or a netbook/laptop you simply don’t need it.”

    The iPad isn’t supposed to make people ditch their iPhones and laptops. It’s purposely designed to sit between the two, not replace them, because Apple seriously wants to avoid having it cannibalize iPhone/iPodTouch/Macbook sales.

    Netbooks, though? Netbooks are fucked. They’re laptops running a desktop OS shoehorned into a formfactor so tiny it makes both OS and laptop an excruciating pain in the ass to use. For the icing on the crapcake, their hardware is too underpowered to run their own operating system anything even close to ‘well’. The iPad is what netbooks would be if both OS and hardware were designed around the formfactor instead of shoehorned into it. Or in otherwords, what netbooks would be if they didn’t suck. There’s a market for that, and it’s a very big one.

    “The article also uses false logic, that Microsoft’s stock will just sit there at the same value.”

    That’s right. Microsoft’s stock won’t just sit there, it’s going to keep plummeting unabated.

    “Windows 7 sales have been impressive”

    Windows 7 is an even worse failure than Vista at keeping the Windows sheep in the pen; Mac sales are still rising, even Linux adoption is making gains. Halting the exodus away from Windows is alot more crucial for Microsoft than “impressive sales”.

    Infact, if you want to know just how relevent “impressive sales” are, take a look at this.

    “Courier”

    Even if it weren’t vapourware, the Courier would still be a joke. You mean instead of one nice spacious screen, I can have two small screens seperating by a large hinge down the middle? Wow! That’s effectively half the screen real-estate! Courier is gonna be awesome.

    “PC manufacturers are releasing a dozen slate PC’s this year”

    Yes, just like they released dozens of slate PCs last year. And the year before that. And the year before for that, to absolutely no success. What’s your point?

  29. @jecastej:

    ” I builded myself?” “loosing its market?” “radicalization”? I’ll spot you the “manny” as just a typo, but it looks like you just hit the negative hat trick of grammar use. Maybe now if you’d just say “yup, I seen him” it’d be perfect!

  30. @@doc e
    “Steve Jobs is a liberal, supports Democrats and is a FOB. He used to let the Clintons stay at his house when visiting their daughter @ Stanford.
    None of this is in dispute. How do you like that?”

    Steve is an anomaly; there’s always the exception to the rule. However it is a complete mystery why someone like Steve would want to spend any time with anyone like the Clintons or why he has Gore on the board of directors.

    There’s always the possibility he’s playing strategic associations for business purposes; something many companies do as a way of protecting their business interests.

  31. When Apple surpasses Microsoft in market value, I hope Steve Balmer will still remain the captain of the Microsoft Titanic. This way the Microsofties will still be unaware that they are plunging into the deep ocean of decline. Balmer will make sure that there will be a big band to play a requiem over their imminent death.

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