Shares of Microsoft Corp. surged into record territory Friday, enough to push the software giant’s market capitalization above the $1 trillion mark.
The rally stretched Microsoft’s lead as the most valuable U.S. company to well more than $100 billion, as the stocks of second-place Amazon.com Inc. and Apple Inc. languished well below their record closes.
Amazon’s market cap was at $886.1 billion and Apple was valued at $873.9 billion.
Microsoft reached a $1 trillion valuation on a closing basis just once before, on April 30, at $1.001 trillion, about a week after the company reported better-than-expected quarterly results. With 7.66 billion shares outstanding as of April 18, according to the latest quarterly filing, Microsoft would be in trillion-dollar company as long as the stock closes above $130.50.
MacDailyNews Take: Only on the Bizarro World of Wall Street is Microsoft worth more than Apple.
This too shall pass.
“Only on the Bizarro World of Wall Street is Microsoft worth more than Apple.”-MDN
I have no skin in that game, but didn’t MS save Apple’s as with a $120MM cash infusion in the 90s when Apple was running on fumes?
Yes. MS needed all the cover they could get during their antitrust trials. Apple needed new users. Is there any bigger software user base than Microsoft Office? Both companies benefited. To this day, no other Mac program can replace it.
Don’t forget that Apple made Bootcamp and iTunes for Windows too. They knew that the Mac would never be sustainable with only a single digit percentage market share. A lesson that seems to have been forgotten in Cupertino.
And yet it became immensely sustainable at below 10% market share and indeed made, and makes more money than any other PC maker in so doing. Indeed more than most of them put together. So not sure which lesson you are referring to.
Fine. Why the arrogance?
No that’s not correct. Just look up the facts.
Microsoft investment in Apple:
In exchange for the $150 million investment Microsoft received non-voting shares in Apple. Jobs also agreed to introduce Microsoft’s Internet Explorer for Mac. Apple, on the other hand, got both the cash and a guarantee that Microsoft would support Office for the Mac for at least five years.
While Apple was struggling at the time, it did have approximately $1.2 billion in cash reserves.
Most importantly, Apple agreed to drop its long-running lawsuit that alleged Microsoft copied the look and feel of Mac OS. This lawsuit had raged for much of the previous 10 years. And Microsoft got to look a bit less monopolistic at a time it was catching the attention of antitrust authorities.
Microsoft later pulled their investment out of Apple and reaped a nice profit though if they had held on to it it would’ve been worth a massive fortune. Another dumb move by Microsoft.
Correct a story that has been long made clear off those willing to listen, but the other story suits the nefarious motivations of many I’m afraid so will stick around as an urban myth for some time yet.
Was it or was it not a cash infusion at the time it was needed? Even in the form of investment, couldn’t they have done nothing? Absolutely not saying MS is an angel in any shape or form.
The lawsuit was long lost and going through appeals.
That said, I’m not defending MS, I couldn’t care less, just retorting fan claims.
No dumb dumb, it wasn’t needed. Apple had no debt at the time and they had Ace up their sleeve (Steve Jobs).
And why should I believe you?
You’re not “retorting fan claims”. You’re pushing your own story. If you had done even a tiny amount of research you would find all the evidence you need to know the true story which is that Apple did not need the investment from Microsoft and that it was a good deal for both companies at the time. It is a fan myth that Microsoft saved Apple and you are repeating it so that makes you a fan.
MS did save Apple and I stand by what I said and even provided a news link with quotes from Jobs.
Without facts what you say doesn’t matter. It’s as if you weren’t born.
The article you linked to doesn’t support your own argument. Jobs talks about breaking the paradigm and moving past the idea that for Apple to win Microsoft had to lose. The investment was a token mostly for PR. What helped Apple the most was retaining Microsoft as a Mac software developer. Now you’ll change your story and say that’s what you meant but the fact is you keep commenting about the cash infusion saving Apple. That is incorrect. The deal was good for both Apple and Microsoft and it was smart and prescient of Jobs to break that paradigm of competition and get to work on the next big thing which is exactly what Jobs did and Apple has since mopped the floor with Microsoft. Jobs understood at the time that Microsoft was making the wrong bet and took a great opportunity to move past Microsoft.
So even you admit MS helped Apple in the dark days and MDN’s hubris was due to short memory.
“So even you admit MS helped Apple in the dark days”
As predicted you’ve changed your story from “cash infusion” to “helped Apple”. However, both Apple and Microsoft were helped by the deal at the time. The fact remains the “cash infusion” was meaningless. The cash is what you commented about more than once. Nice backpeddling though. I’m always impressed how trolls can fool themselves into believing they were never wrong.
The help included a cash infusion. Deny all you want it was cash when cash was needed. MS was loaded.
And anyway did you once see me bring up how MS is more valuable than Apple? I don’t care, but it seems that MDN does, and maybe you too.
AppleCynic, your biased rhetoric gets more strident and extreme every year. You are distorting the truth and refuse to correct yourself. As a result, your inputs have no value to me.
There is no distortion of truth. Apple neede dthe help, by everyone’s admission, including yours. That help had mS money as a necessary component.
Why is it you’re acting like a Red Sox fan, and I say “Bucky Dent”?
Actually, I find Apple a little more palatable under Cook.
“money as a necessary component.”
So sorry. Incorrect. The money was not necessary for Apple but it was a good part of the deal for Microsoft. You’re so desperate to not admit you got something wrong. Just sad.
KingMel is right, your comments have no value because you can’t admit when you get something wrong. You just spout fan rhetoric now.
I suppose MS should be grateful to Apple for allowing them to save them.
BTW, at the time Apple wasn’t even in my radar. I was barely aware of them.
It’s only after becoming a customer, after Vista, did my contempt for them develop. Still, I stick to facts.
The cash itself was symbolic of support, more important at the time was another 5 year MS Office support (which in fact has never stopped) was the more important part of the deal and for Microsoft Apple would stop coming after them for UI infringement. Ending a legal distraction.
Finally. I get so tired of reading that Microsoft “saved” Apple. I remember thinking at the time they had more than a billion dollars laying around that investment of Microsoft’s was more political gesture than anything else.
Did it help save Apple or not?
Frankly the only reason I brought it up was to counter the hubris of MDNs take. Yes, I care more about that.
NO IT DIDN’T…..
As part of the agreement, MS did invest $150M in Apple in exchange for non-voting shares and an end to the Mac software litigation and continuation of Office for Mac for five years, etc. Those are facts, AppleCynic.
Claiming that this agreement “saved” Apple is speculation that supports a partupicular mindset. If you truly “stick to facts” as you claim, then you must admit the logic of this argument.
If you choose to believe that MS saved Aplle, then that is your right. But don’t try to spread that story based on speculation that you claim to be factual. The fact is, you cannot prove your speculation.
I even provided a reference. The fact is Apple received much needed cash, something that someone else said here MS got back from selling those non voting shares. The equivalent of a loan.
Oh look another reference to MS bailing out Apple. Did I write this one too?
I also seem to remember much discussion in these forms that there was a time Apple had days of operating funds remaining. I guess the MS money helped.
Like I said, I couldn’t care less other than to tone down the hubris of the MDN take.
Peterblood has the true story. I was around then. I dated Steve’s (later) girlfriend, and met Steve twice. The rest of these skewed stories are false. Gates did steal the Mac UI and, due to production delays in getting the Mac launched, he created the Windows kludge and beat Apple to becoming the most widely used UI. Bill promised Steve that he wouldn’t release a copycat product for 12 months, then did it 13 months later and the Mac followed a few months after that. History was altered and Steve lost his chance for Mac to become the worldwide UI standard.
AC memories do fade over time for some, but I don’t know your age. PeterBlood and I vividly remember it correctly like it was yesterday. Read Peter’s post for information, nuff said…
There are no angels GeoB.
Lysdexia strikes again!
Sorry my good friend. I cannot defend you on this one. Tempted to give you advice, but judging by some snarky replies and some shifting wording deflections, well, it is what it is and leave it at that…
No worries friend. Certainly not the only position we disagree. And yet our goodwill remains. Snark is acknowledged and retained in the spirit it was presented to those so deserving. Either way…
The general consensus in the tech press is clearly that Apple was saved with MS help.
The MDN take to which I was responding was a meaningless “we’re losing to MS, but it will change”. Complete and utter nonsense. How does it matter to anyone, in any meaningful way, other than sacrilegious pride which company has the highest market cap.
I correctly don’t see anyone celebrating for MS.
PS- I know you’re aware some snark is friendly and familiar. Some not.
FOR AC: Please post.
Appreciate the “goodwill” comment and realization between us. Wish both parties in Washington would learn the lesson and do the same.
Yes, recognize snark cuts both ways and you are very proficient in that regard.
The bottom line for me is whether Apple needed the Microsoft agreement to survive.
The media got it all wrong as usual while Steve was eloquent in bridging peace between tech titans and got it right in the details of the agreement. Brilliant.
It was certainly in the best interests of both companies to make that historic deal, ignoring the media tainted analysis.
Microsoft paid more to Apple over stolen IP concerning Mac and Quicktime related technologies and Apple had just purchased NeXT for 420 million before Microsoft supposedly saved Apple. Apple was a 2 billion company at that time. Apple’s biggest problem was about it’s brand than anything else. Of course bleeding red every quarter didn’t help matters either.
Here we go again. Please read one of the articles about that misconception, Apple was not in a bad shape at that time, the reason for $120M was totally different
The articles are clear. The misconception is yours. The hubris is MDN’s.
Stock Market101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “refle ct” the state of the economy, let alone the state of any company represented.
For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.
If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.
Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way.
Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is simply the ability to predict what other traders might do before they do it.
In other words, “traders” are like sheep… If a few suddenly start to run, they all run and in the same direction. Only afterward will analysts attempt to figure out why.
What’s the solution for Apple? Minimize their reliance/exposure to traders. So, you begin share buy-backs and bond issues – with an eye toward reducing your risk (from traders) or perhaps one day eliminating it! (Get out of the stock market and go private. All they’d really need is lots of money to fund themselves! Hmmm.)
I’ll get off my soap-box, now.
Microsoft is leaving Apple is the freaking dust despite Apple’s chasing of profits before everything else. Big investors have far more confidence in Microsoft than Apple because of Microsoft’s Azure Cloud business which is said to have fairly unlimited growth while Apple’s iPhone business has hit the skids with almost no chance of recovery. Microsoft’s institutional holdings are around 75% compared with Apple’s 60% or so. I’ll never understand why Apple ignored the cloud business while all the other major tech companies invested heavily in it. Apple was always holding it’s reserve cash while other companies were investing their reserve cash. Apple has no interest in market share percentage and it shows. Big investors fear companies with small market share percentage because they always think it’s so easy to lose the little they have. Owning Apple based on iPhone sales sure looks like a slippery slope.
I’m not surprised that Amazon has blown Apple away in terms of value, but Microsoft has been quite a surprise, especially after losing big in Windows Mobile. They sunk a lot of money into Nokia and got nothing for it. Even those losses never showed up on their share value. Big investors didn’t desert them. Microsoft never missed a beat and just took off with MS Office subscriptions and their Azure Cloud. No roller-coaster gains like Apple. Just a steady climb into the stratosphere with no end in sight. Nadella has proved he’s a better CEO than Cook by a wide margin. Big investors love Nadella’s cloud strategy, but Tim Cook’s iPhone strategy, not so much.
Apple had such a huge advantage of being the top market cap company and threw it away in just a couple of months. It’s rather hard to believe a company could lose so much value in such a short time and not have been caught running a Ponzi scheme. It’s always been said that getting there first means nothing if you can’t hold onto it. Apple’s fingers were quick but greasy and the market cap crown immediately slipped from their grasp. Apple is still said to be doomed while Microsoft is now said to have a very bright future. It’s kind of weird how things turn out. Almost everything Microsoft does is praised while Apple’s ventures are always being questioned or outright laughed at. Apple’s stores are crowded and Microsoft’s stores are almost empty but I guess that doesn’t mean a damn thing. Microsoft is giving investors and customers more bang for the buck than Apple and it has paid off in a huge way.
Anyway, it was fun while it lasted, but I suppose loyal Apple shareholders have to learn to take the bad with the good. With Apple, you just know if it’s going good for a while, it’s going to turn ugly shortly after. Thank heavens for the Apple dividends because at least that’s something I can always count on during the down times. If China has it’s way, it’s going to be a long, long drop for Apple. Tim Cook won’t be visiting China anytime soon if he values his life.
“Comments” of this length are appropriate for a personal blog, no one comes here to read essays, especially from MiSFiT spergs
MDN’s take is usual fanboy ignorance and refusal to see how much MS has changed. Microsoft was a hideous company under Ballmer but in a few short years has transformed itself with a wide diversity in its product offerings that haven’t even begun to bear the best fruit yet.
By comparison Apple’s portfolio is held up by the iPhone, as MDN regularly states the well heeled iPhone user spends money and they are what’s keeping Apple where they are. Apple’s cloud services are completely depended on iOS users and any loss of these users to competing platforms will hit Apple twice as hard. The protectionist US government policies cannot save Apple from a host of Eastern tech companies invading their space.
Nadella is everything Ballmer wasn’t as CEO in the same way Timmy is everything Jobs wasn’t. I think we’ve seen peak Apple and I’d sell Apple stock and buy MS stock right now.
Apple are not doomed but they will lose a lot of their capital reserves putting right Timmy’s lack of vision and will be a bit player in the cloud computing game where Amazon, Google and Microsoft will be carving up the space for themselves.
2 years ago I’d never believe I’d write the above, I was a happy Apple customer of 15 years.
macnificentseven48 is pretty much spot on. Nick has a problem with reading.
Apple has to get over themselves and stop it with the closed attitude. In some parts of the tech world they are called “The Great Arrogance.”
Microsoft learned this. It is now a highly open company. They listen, they react, and it doesn’t take 6 years for a response. Apple is still trying to control every aspect of your computing world. To some degree they can, but it is we the users, developers, and systems engineers who suffer for it. As magnificentseven48 mentioned, Azure is a big deal. If Apple gave a hoot about enterprise computing they’re be all over it. Do they not even listen to their own enterprise IT people? How can it have taken a decade, A DECADE, for Apple to realize that people would want to separate their work and personal data?
Apple’s refusal to work with other companies gives us messes like computers that can only use a fraction of the available hardware and software that Windows machines can. Look at Nvidia for example.
If you search the news for “Microsoft teams up with” or something like that you will find tons of articles on Microsoft working with just about everybody.
Time to climb out of the sandbox, stop proselytizing, and start cooperating.
Open-Source ‘Great Satan’ No More, Microsoft Wins Over Skeptics
Microsoft is relying on GitHub and experts in rival programming tools to win back developers
AWS and Azure together make less profit than the Apple Watch the the Mac combined. See the earning reports.
Add the 15% Apple shareholders lost after the WH person opened his mouth last month?
A ten thousand dollar investment in Microsoft stock in June of 2004 (fifteen years ago) would be worth $76,000 today. The same investment in Apple stock in June of 2004 would be worth a little over a million dollars today.
Got anything else stupid to say? Or don’t you understand how to invest for the long term?
This has to do with AWS and Azure so it’s not quite apples to apples. Just about every business is going cloud with either Microsoft or Amazon. Google is a distant 3rd and Apple chose not to go down this path.
“MacDailyNews Take: Only on the Bizarro World”
Bizarro World? Have you looked at Washington DC lately?
MDN is so far up Trump’s ass that they think the predictable economic meltdown due to the asinine Trump isolationist policies and brinksmanship is going to make them richer. Or greater. Or something.
This is the most corrupt treasonous administration in over a century, and that is saying something. Normally MDN is politics central, but as there hasn’t been any accomplishment for the greater long term good yet, all MDN can do is whine about Microsoft.
The Orange person dropped Apple 15% by opening his mouth.
Hey How come I don’t
see that asshole first 2014 anymore? Was he a bot, or a closet fascist disappointed that everything that that fuckstain trump touches turns to shit?