ETFs In Focus as Microsoft Tops Apple as Most Valuable Public Company
Microsoft MSFT has emerged as the most valuable publicly traded company in the United States at the close of Friday's trading session, surpassing Apple AAPL. This shift follows a brief period during intraday trading on Thursday when Microsoft temporarily overtook the iPhone maker in terms of market capitalization.
For over a year, Apple had held the title of the most valuable public company, with only brief periods when Saudi Aramco and Microsoft temporarily took the top position. Microsoft's shares saw an increase of more than 3% over the course of the week, pushing the company's market capitalization to $2.89 trillion. Conversely, Apple experienced a drop of over 3% in its stock value during the same period, resulting in a decrease in its valuation to $2.87 trillion.
Analyst Downgrade for Apple
Redburn Atlantic Equities analyst James Cordwell downgraded Apple from a "buy" to a "neutral" rating on Wednesday, citing concerns about limited upside potential in iPhone growth and expectations of an underwhelming performance in the March quarter, as quoted on CNBC. Apple announced on Thursday that former Vice President Al Gore would retire from the company's board next month after serving as a director since 2003.
Confidence in Microsoft's AI Capabilities
Microsoft received a vote of confidence on Thursday as it showcased its artificial intelligence capabilities to developers at an event in San Francisco. Piper Sandler analysts expressed optimism about the momentum surrounding Microsoft's most mature AI products and noted an increase in GitHub website traffic for three consecutive months year over year. These analysts have provided a favorable rating equivalent to a "buy" for Microsoft shares.
What Lies Ahead?
Based on short-term price targets offered by 36 analysts, the average price target for Microsoft comes to $408.34. The forecasts range from a low of $232.00 to a high of $600.00. The average price target represents an increase of 6.16% from the last closing price of $384.63.
Based on short-term price targets offered by 25 analysts, the average price target for Apple comes to $205.15. The forecasts range from a low of $160.00 to a high of $250.00. The average price target represents an increase of 10.54% from the last closing price of $185.59.
Microsoft currently has an average brokerage recommendation (ABR) of 1.24 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 38 brokerage firms. The current ABR compares to an ABR of 1.23 a month ago based on 39 recommendations. Apple currently has an average brokerage recommendation (ABR) of 1.88 on a scale of 1 to 5.
ETFs in Focus
The duel between the two tech giants has put focus on tech ETFs having the largest exposure to these companies. These are Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, iShares U.S. Technology ETF IYW and MSCI Information Technology Index ETF FTEC.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
