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Microsoft just overtook Apple to claim the market capitalization crown, why this matters

Microsoft ha logrado una hazaña notable: ha superado a Apple como la empresa más valiosa del mundo por capitalización de mercado. Este es un hito importante para el gigante tecnológico, que ha aumentado constantemente sus ingresos y ganancias en los últimos años, al mismo tiempo que ha diversificado su negocio más allá de sus productos principales de Windows y Office. En esta publicación de blog, exploraremos cómo Microsoft logró superar a Apple y por qué esto es importante para el futuro de la industria tecnológica.

Microsoft
Microsoft

Market capitalization, or market cap, is the total value of a company’s outstanding shares. It is calculated by multiplying the number of shares by the current share price. As of January 22, 2024, Microsoft’s market capitalization was $2.75 trillion, while Apple’s was $2.72 trillion, according to Yahoo Finance. This means that Microsoft is worth more than Apple by about $30 billion, which is not a huge margin, but still impressive considering that Apple has been the clear leader for most of the last decade.

How did Microsoft achieve this? One of the main reasons is its successful transition to the cloud computing market, which has boomed in recent years as more businesses and consumers rely on online services and data storage. Microsoft’s Azure platform is one of the leading cloud infrastructure and software providers and competes with Amazon Web Services (AWS) and Google Cloud Platform (GCP). Azure revenue grew 51% year over year in Q4 2023, reaching $21.4 billion, according to Microsoft’s earnings report. Azure also has a strong presence in the government and enterprise sectors, winning lucrative contracts such as the $10 billion JEDI deal with the Pentagon.

Another reason is Microsoft’s diversified portfolio of products and services, which spans several segments and markets. In addition to Windows and Office, which continue to dominate in their respective fields, Microsoft also owns popular brands such as LinkedIn, Skype, Xbox, Surface, Bing and GitHub. These businesses generate steady revenue streams and also create synergies and cross-selling opportunities for Microsoft. For example, LinkedIn is a valuable source of data and insights for Microsoft’s artificial intelligence and cloud offerings, while Xbox and Surface help Microsoft reach new audiences and showcase its hardware capabilities.

Why does this matter? The market capitalization crown is not only a symbolic achievement, but also a reflection of Microsoft’s influence and innovation in the technology industry. Microsoft is one of the few companies that can compete with Apple in terms of quality, design and customer loyalty. It is also one of the few companies that can challenge Amazon and Google in terms of scale, scope and ambition. By outperforming Apple, Microsoft has proven that it is not only a survivor, but also a leader and disruptor in the digital age.

Microsoft’s success also has implications for the economy and society at large. As one of the world’s largest employers and investors, Microsoft has a significant impact on job creation, research and development, education, philanthropy and environmental sustainability. Microsoft has committed to becoming carbon negative by 2030, meaning it will remove more carbon from the atmosphere than it emits. It has also pledged to support digital skills training for 25 million people worldwide by 2025, as well as donating $1 billion to nonprofits and academic institutions over the next five years.

Microsoft’s rise to the top is not guaranteed to last forever. The technology industry is constantly evolving and changing, and new competitors and challengers can emerge at any time. Apple is not going to give up easily, nor is Amazon or Google. However, Microsoft has demonstrated that it has the vision, strategy and execution to adapt and thrive in any situation. It has also demonstrated that it has the values, culture and purpose to make a positive difference in the world. That’s why Microsoft’s market capitalization crown is important.

Microsoft has surpassed Apple as the world’s most valuable company thanks to its focus on generative artificial intelligence. According to market data, Microsoft’s market capitalization reached $2.887 trillion, while Apple’s market capitalization was $2.875 trillion.

Artificial intelligence is not only a hot topic among tech giants, it is also a key factor in their investment strategies. Microsoft has made several major investments in AI in recent years, such as the $10 billion deal with OpenAI. This agreement has enabled Microsoft to leverage OpenAI’s technology in its various software products. One of the domains where Microsoft has applied AI is its search engine, Bing, which aims to compete with Google’s dominance in web search.