Unstoppable Giants: Apple and Microsoft Hold Firm as World Leaders in Value
According to Reuters, Apple and Microsoft, two tech giants, maintained their positions as the world’s most valuable companies by the end of July.
Apple achieved a significant milestone last month by becoming the first company globally to reach a market value of $3 trillion. The tech giant’s expansion into new markets and expectations of more moderate US interest rate hikes contributed to this achievement.
Other tech companies also experienced strong quarterly earnings, boosting overall market sentiment. Alphabet, Meta Platforms, Intel, and Lam Research reported impressive results, leading to increased market cap and positive investor sentiment in July.
Facebook owner Meta’s market cap surged more than 10% during the month due to its positive revenue forecast and robust ad revenue growth in the second quarter.
Microsoft surpassed Wall Street’s revenue estimates for its fiscal fourth quarter, driven by growth in its cloud computing and office software businesses. However, the company’s share price declined by 1.4% in July, following the announcement of an aggressive spending plan to meet the demand for artificial intelligence services. As of the end of July, Microsoft’s market cap stood at $2.49 trillion.
Apple is set to announce its earnings for the April-June quarter on Thursday.
Market analyst Dan Ives from Wedbush expressed confidence in the tech sector, believing that a new tech bull market has started this year. He likened the current AI Gold Rush to the start of the Internet era in 1995, highlighting its potential for growth.
In the financial sector, JP Morgan Chase’s market cap grew by approximately 8.6% in July, benefiting from increased earnings from borrowers’ interest payments and the acquisition of First Republic Bank.
Data from Refinitiv showed that 69% of large- and mid-cap US companies have exceeded analysts’ Q2 earnings estimates so far, with the tech sector accounting for 82% of these positive surprises.
