Microsoft is getting close to overtaking Apple as the most valuable US company

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Microsoft's decision to extend its reach and business portfolio seems to be paying off as it gets within a stone's throw of Apple's market leader position.

Microsoft employees throwing cash in the air
(Image credit: Windows Central | Kevin Okemwa)

What you need to know

  • Microsoft is under $100 billion behind Apple in market valuation.
  • While other companies are stagnant and losing ground by standing still, Microsoft is making waves in cloud, AI, and gaming.
  • Microsoft, while not perfect, has been a good example of how a company can work in the best interest of its investors while also putting employees and consumers first.

The source for the market caps comes from factset.com via Marketwatch.com and seems to be a live feed of the market prices. If you follow Microsoft as much as we do, it seems palpable that there is some magic going on over there. While there are areas of the business we want them to improve on, for the most part, the company seems to have positive forward momentum and is making fewer gaffs that would set the company's progress back. 

With our recent news about the upcoming Surface Pro 10 and Surface Laptop 6 and hardware manufacturers bending the knee to Copilot as Microsoft announced that some Windows 11 devices going forward are going to have an integrated, built-in Copilot button, it seems like Microsoft is heading in the right direction. Hardware is still one of Microsoft's weak points, but AI seems to be doing well, especially as Microsoft and OpenAI continue to strengthen their relationship. And of course, Xbox, with the now-closed Activision Blizzard King deal, has a great chance to make waves in the gaming world that could lead to a serious shift in overall perception of the brand. 

Is it a good time to invest in Microsoft?

Microsoft seems to be printing money for its investors (Image credit: Future)

Per Companiesmarketcap.com, Microsoft has had a nearly 62% increase in stock value year over year, that alone is enough reason for me to invest in them. But on top of that, Microsoft has been trying, at least from my perspective, to find ways to increase its market cap without harming its consumers and employees. Last year Microsoft laid off 11,000 employees, however, from what we saw across the industry it indeed seems this was a correction for overhiring during the pandemic and the crazy growth period companies were experiencing during lockdown. 

Microsoft is constantly voted one of the best places to work by many sources, and the company seems to place inclusivity and employee satisfaction at the center of its business' core values. In many other ways, Microsoft has shown that it wishes to be a responsible megacorporation, from Xbox winning the Green Studio of the Year award at Gamescom to being one of the last studios to raise the price of its games to $70. 

Don't get me wrong, I'm sure there are plenty of things Microsoft could and should be doing better for its employees, consumers, and the environment, but when I see what Apple is doing in the same 3 categories, even from an outside perspective, I guess it is easy for me to root for a company that has backed its platitudes with actual beneficial action. 

Will Microsoft have a good 2024?

2024 is set to be a blockbuster year for Microsoft, make sure to tune in to our upcoming CES coverage for all the newest news and highlights of the awesome new technology coming out this year as well as get a look into the future of Copilot and how Microsoft plans to make it so ubiquitous we won't be able to escape it.

Xbox, of course, is doing better than it has in years, and 2024 could be Xbox's best year ever, stay tuned to Windows Central for breaking news. If you haven't had a chance yet, check out these top 7 hidden gem games that you shouldn't miss in 2024, some of which are in Game Pass.

What do you think about Microsoft becoming the number 1 valued company in the U.S.? What do you think Microsoft could be doing better? Let us know in the comments.

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Colton Stradling
Colton Stradling
Contributor

Colton is a seasoned cybersecurity professional that wants to share his love of technology with the Windows Central audience. When he isn’t assisting in defending companies from the newest zero-days or sharing his thoughts through his articles, he loves to spend time with his family and play video games on PC and Xbox. Colton focuses on buying guides, PCs, and devices and is always happy to have a conversation about emerging tech and gaming news. 

3 Comments Comment from the forums
  • GraniteStateColin
    All good points. Just on investing, careful for FOMO overtaking the maxim: buy low, sell high. This could also be a great time to sell some of that MS stock, to liquidate those gains and enjoy the proceeds. Buying stocks when they're doing great is usually not the best (but, there are plenty of exceptions and with strong growth, MS stock today could certainly be one of those exceptions). Because market timing is also nearly impossible, the recommended approach is "dollar-cost averaging," which just means buying a little bit every month (or whatever period makes sense for you). That ensures at least some of those purchases are at good prices.

    A typical decent stock portfolio should roughly double in value every 10 years (without requiring any purchases to add to the principal), even factoring in recessions and negative global events. When they don't for some investors, it's usually because they have dumped stock during downturns (selling low) and jumped in at market peaks (buying high). MS has significantly outperformed that typical 10-year doubling, and if pressed, I would forecast that they will again over the next decade, but I do keep my investments diversified (no more than 4% in any one company, except for companies where I play a role in the company's management).

    By the way, this is also why tax policy and political rhetoric that demonize "corporate profits" as something that should be taken away or punished is so bad for so many people: tens of millions of people in the U.S. have their retirement plan based around their 401Ks (vastly more value than the zero-gain in Social Security, which is barely a survival-level safety net) or personal IRAs. People in other countries have similar holdings. Anything that harms corporate profits not only hurts those companies directly, which translates to a reduction in their ability to invest in R&D for future growth, it also hurts the lives of every single person with stock in their 401K and ONLY stocks can provide that doubling in value every 10 years.
    Reply
  • Mattytwotimes
    https://www.cnbc.com/2023/07/10/microsoft-confirms-more-job-cuts-on-top-of-10000-layoffs-in-january.html
    I'm old enough to remember this.
    Reply
  • fjtorres5591
    GraniteStateColin said:
    GraniteStateColin said:


    By the way, this is also why tax policy and political rhetoric that demonize "corporate profits" as something that should be taken away or punished is so bad for so many people: tens of millions of people in the U.S. have their retirement plan based around their 401Ks (vastly more value than the zero-gain in Social Security, which is barely a survival-level safety net) or personal IRAs. People in other countries have similar holdings. Anything that harms corporate profits not only hurts those companies directly, which translates to a reduction in their ability to invest in R&D for future growth, it also hurts the lives of every single person with stock in their 401K and ONLY stocks can provide that doubling in value every 10 years.
    A point many people forget is that MS is 72.05% owned by institutional investors (pension funds, money management corps, etc) and 28% of their net income is returned to these investors in dividends.
    That is a substantial revenue stream for some retirees.
    The dividend ratio isn't the highest but it is pretty large for a company that large growing that fast and investing so much in future revenue growth.

    The question for MS isn't so much when they'll surpass Apple's valuation but how high can they go. Three trillion looks like a given. After that? TBD. Best guess is $3T may very well be their floor, long term.
    Reply