14 DAY TRIAL // Apple is once again the most valuable company in the United States with a market value of $889 billion, followed by Amazon with $768 billion, according to new data.
While Apple holding the leading spot is not at all surprising news given that Cupertino has been the most valuable company for a few years already, of particular note is Amazon’s strong performance that pushed it just ahead of Alphabet, the parent company of Google.
Alphabet, which has been the runner-up for a long time, fell to third place with $761 billion market cap, while Microsoft is next with $717 billion.
The race for $1 billion market cap
Analysts previously forecasted that Apple could become the first company in the world to be worth $1 trillion, but the recent sales performance is an indication that the Cupertino-based giant needs more time to achieve this milestone.
The launch of the iPhone X was previously considered a potential catalyst of a substantial boom that would push Apple beyond the $1 trillion market cap, but as it turns out, demand for the device is well below expectations and the company’s market value is stagnating.
Apple, however, has big hopes that this year’s iPhone lineup would boost the market cap, as a more affordable device is very likely to be offered as well.
On the other hand, Apple’s rivals are also well-positioned for significant growth in the coming years, and Microsoft itself could break the $1 trillion threshold in two to three years.
Revenues of Microsoft’s cloud business have skyrocketed in the latest quarters, and a rapid growth rate is expected to be maintained in the next couple of years, which could give the world’s largest software firm the opportunity to get closer to its long-time rival in the tech market.