Apple, Microsoft Battle For Position As World's Most Valuable Company By Market Cap

Apple Inc. AAPL re-entered the $1-trillion club Oct. 4 thanks to a record run in the wake of improving fundamentals and alleviation of U.S.-China trade concerns. 

Volatile Ride Around $1 Trillion Valuation

Apple stock hit the $1 trillion market cap mark for the first time in August 2018 before iPhone woes dragged it below that level in early November 2018. Its valuation remained below the $1-trillion mark until Sept. 11, 2019.

With the iPhone 11 models introduced in late September generating some excitement, the stock re-entered $1-trillion territory, only to move in and out of the level.

Since Oct. 4, Apple stock has been consistently closing with a market capitalization of over $1 trillion.

On Friday, Apple closed at a record high of $236.86, having hit an intra-day high of $238.13 amid a slew of positive sell-side comments and the partial trade deal struck between the U.S. and China.

Toppling Microsoft?

Monday's session is significant, as Apple appears on track to overtake software giant Microsoft Corporation MSFT as the most valued U.S. company after a six-month hiatus.

On April 17, Apple had a market cap in excess of Microsoft: $935.88 billion versus Microsoft's $933.49 billion.

Source: Y Charts

Microsoft and Apple are the only companies with market caps exceeding $1 trillion.

Amazon.com, Inc. AMZN is a distant third, with a market cap around $855 million.

Alphabet Inc GOOGL GOOG is close behind with a roughly $846-million market capitalization.

Sell-Side Predicts Strong Close To Year

Analysts are projecting strong performance for the September quarter.

Canaccord Genuity analyst Michael Walkley said he expects Apple's quarterly results to come in at the high end of its guidance. Most analysts have nudged up their iPhone volume estimates for the September quarter, as well for 2019 and 2020 as a whole. 

Apple is also likely to double its Services business revenues from 2016 to 2020, Walkley said, crediting his expectations to the planned launch of Apple News+, Apple TV+, Apple Card and other services.

Given the strong product momentum and the modicum of improvement seen in macro fundamentals, Apple's market cap could stay above the $1 trillion mark barring any unexpected negative developments.

Apple shares were adding 0.03% to $236.28 at the time of publication Monday. 

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Photo courtesy of Apple.