Apple Breezes By Microsoft on S&P 500

[Michael Essany]

Okay, so maybe "breezes" isn't the best choice of words, given how long and hard the road to success proved for Apple. But Apple has finally gotten a leg up on Microsoft - at least on Wall Street.

The Standard & Poor's index services unit says Apple, with a market cap of $241.5 billion, is now ahead of Microsoft's $239.5 billion market capitalization. As a result, Apple now lags behind only Exxon Mobil (and its market cap of just north of $300 billion). If investors continue to react as positively toward Apple as they have on the heels of recent mind-blowing earnings, it may not be long before Apple sits pretty atop all of the S&P 500.

Apple was able to bump Microsoft on Thursday as a result of the company reporting a quarterly profit of $3.07 billion - or $3.33 a share - on $13.5 billion in revenue. A stunning success by all accounts, the stock surge enjoyed by Apple has promoted some - like CNN Money's editor at large, Paul R. La Monica - to suggest that Apple should finally be listed on the Dow because its no longer just a "plucky tech underdog."

"Now more than ever, Apple merits serious consideration."

While Apple is no stranger to rolling out devices that quicken the pace and expediency of our lives, perhaps Apple's addition to the Dow could "juice" the overall performance of the stock market and continue to help spur the economy back from the brink of economic disaster?

[Zeal]

iPhone and iPod saved apple.

[francesthemute19]

When is Microsoft going to attempt to produce their own phone? Hmm..

[TooSlo]

Messany - You may want to clarify exactly what your initial post says. According to an Engadget article last week, these numbers were based purely on numbers of tradable shares and not full market value. MS is still on top in that regard.

The full market value is only $35b higher than Apple though.

Microsoft snags $14.5b revenue, $4.01b net income for Q3 -- Engadget

Market Watch is reporting that Apple has today surpassed Microsoft on the S&P 500, with a float-adjusted market cap of $241.5b, compared with Microsoft's $239.5b. Exxon is still at the top. It's worth noting that this is a free-float index that only considers stocks readily available for trading, and not free-floating stocks such as those held by company insiders. According to the Wall Street Journal, that important caveat explains the discrepancy between those figures and what we're seeing in full market value, where Microsoft's $275.3b cap still bests Apple's $241.63b. So which is the largest tech company based on market capitalization? That depends on how you measure.

[kraziebone]

I have rooted for apple all these years as an underdog who was suffocated by Microsoft in the early days but now that they're emerging as the dominant player that Microsoft strives to keep up with in many areas, there isn't anymore of that underdog feel. I kinda have mixed feelings about this.

[TooSlo]

I have rooted for apple all these years as an underdog who was suffocated by Microsoft in the early days but now that they're emerging as the dominant player that Microsoft strives to keep up with in many areas, there isn't anymore of that underdog feel. I kinda have mixed feelings about this.

The areas that Apple is succeeding in for the most part are phone and mp3 devices, so I don't know if you would still have that "underdog" feel when comparing apple computers to PCs.

While they have become more homogeneous in regards to internal components, they are still far behind in overall market share of computers.

Guess you still have the underdog feeling there? (not sarcastic)

Both MS and Apple posted some pretty big earnings increases over the last year, including some huge increases in overall sales for both companies.

The addition of Bing for MS, as well as increased sales volume of gaming has helped push MS profits is a great growth trend where the games division made almost 250% more profit over the prior year which is nothing to scoff at.

Overall I think we see two different trends. MS is pushing huge volumes at a lower profit margin and Apple has their traditionally higher profit margin, but also great growth. The next fiscal year will definitely be very interesting on both fronts as a new version of Exchange Server will be releasing this year as well as other business related happenings.

The government has set aside over $5b for hospitals to upgrade their healthcare IT, which is going to push both Windows Server upgrades and desktops. With Windows 7 becoming the go-to OS since XP is going to be ending support within the next 2 years, there will be a huge amount of upgrades and licenses sold this year.

I can't speak to Apple in this regard, but I can imagine that they will be seeing very little of the available $5b+

[Pitbull2o08]

When is Microsoft going to attempt to produce their own phone? Hmm..

This year

Windows Phone 7

[Imsorussian]

Mocrosoft phone? Running on windows? Hmm at least theyll save on color screen they should just put blue screen cause all it does is crash

[extremzocker]

ugh i hate all the htcs with windows mobile on it... so slow and buggy

[politicalslug]

Wow! Another inaccurately titled article completely lifted off another site, but lacking in all necessary specifics. Apple's market cap is well below Microsoft's, all shares considered. You just magically picked the information from Engadget's article that suited your fancy and assumed would get your article the most hits. What has this website come to? This used to be a site dedicated to modding the iPhone and now it's falsifying stories about Apple's stock price? WTF?

[Pitbull2o08]

The new Windows 7 phones will be made by Windows...not HTC as the previous W-mobiles have been.

[cpkirkley]

Mocrosoft phone? Running on windows? Hmm at least theyll save on color screen they should just put blue screen cause all it does is crash

Fail.


@ Pitbull2008

Microsift isnt atually manufacturing the phones, they will still be produced by 3rd parties. Which compared to Apple's model of making both the HW and SW, is probably a more profitable position over the long run because all they need to do is sell the license. No hardware support really necessary if HTC, Samsung, Sony Ericsson, etc. are physically making the device.

Anyone seen the Dell lightning/thunder? Looking pretty damned good to me.