Apple Inc., the iconic tech company known across the globe, has had to endure a significant blow. In a turn of events largely driven by investor skepticism about the continuing growth of iPhone sales, Apple’s share value took a dive. As Apple’s stock spirals downwards, its prestigious position as the world’s most valuable company by market capitalization became vulnerable. Cold hard facts have now surfaced: Alphabet Inc., the parent company of Google, has thunderously overtaken Apple.
As of the end of yesterday’s trading, Alphabet Inc. notched an approximate value of $500 billion, soaring past Apple’s $494 billion. These figures indicate a roughly 2% decrease in Apple’s stock price to close at $90.32 on Thursday. This drop marked a considerable compression in the Cupertino company’s value, effectively positioning it as the runner-up behind Alphabet, which boasts a value of $499.9 billion.
In an unfortunate trajectory for the tech giant, Apple’s shares have plummeted in a freefall this year, down more than 14%. This decrease came on the heels of disappointing first-quarter results. To add salt to the wound, this is not the first time Alphabet has soared past Apple in 2016. With Apple’s performance seeming less stellar than its heyday, the company is being viewed less as a market propellant and more of a deadweight, exerting negative pressure on the Dow.
In the wake of this downturn, investors have reportedly witnessed an evaporation of $275 billion in market value from Apple since it reached its pinnacle in early 2015, as cited in a USA Today report.
The top three positions in the list of the largest global companies by market capitalization, are now held by Alphabet, Apple, and Microsoft – reinforcing the dominance of the tech industry. The fourth and fifth spots are occupied by the energy sector giant, Exxon Mobil, and Warren Buffet’s investment mammoth, Berkshire Hathaway, respectively.
As we move forward, the tech industry and investors alike will undoubtedly be monitoring these corporate giants closely. Will Alphabet continue to reign supreme, or will Apple revamp with its classic innovation to win back the crown? Only time will tell.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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