Apple is set to lose its crown as the world’s most valuable public company to Microsoft Corp if the iPhone maker’s shares continue their downward slide when the market opens on Friday.
UPDATE: 10:44am EDT: Microsoft at $2.457T is currently valued higher than Apple at $2.431T.
Apple took a $6 billion hit to sales during the fiscal fourth quarter due to a nagging global supply chain problem, leading to a miss on Wall Street expectations. Top boss Tim Cook said the impact will be even worse in the current holiday sales quarter.
The Cupertino, California-based company’s shares were down 3.5% at $147.30 in premarket trading, implying a market capitalization of $2.417 trillion if losses hold. The Windows software maker’s shares were up 0.7% at $324.60 at a market valuation of $2.437 trillion.
Apple, which has repurchased $421.7 billion over the years, had announced a massive $90 billion share buyback in April. As a result, the company’s outstanding stock pool keeps shrinking, ending its fiscal fourth quarter with 16.4 billion shares.
Microsoft’s stock has surged more than 45% this year, with pandemic-induced demand for its cloud-based services driving sales. Shares of Apple have climbed 15% so far this year.
MacDailyNews Take: Apple on Thursday posted an all-time September quarter (fiscal Q421) revenue record of $83.4 billion, up 29% year over year. Analysts’ wrong estimates were pegged at $84.85 billion in revenue. Panic! (dripping sarcasm)
For the 2021 fiscal year, Apple reported revenue of $366 billion, representing 33% annual growth.
For some perspective, Apple’s revenue of $366 billion in just the last 12 months was more than the total market value of Nestlé, Procter & Gamble, Mastercard, Walt Disney, Netflix, Adobe, Salesforce, ExxonMobil, Nike, Toyota… You get the idea.
For the 2021 fiscal year, Apple reported net income (profit) of $94.7 billion.
Apple’s quarterly income, fiscal 2021:
• Q121: $28.8 billion
• Q221: $23.6 billion
• Q321: $21.7 billion
• Q421: $20.6 billion
Total 2021 net income: $94.7 billion
That’s a profit of $259.45 million per day.
Profit from irrational overreaction. This too shall pass.
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