Amazon briefly edges out Apple for most valuable company

Amazon.com briefly became the most valuable company on Wall Street in intraday trade on Monday, days after Microsoft Corp dethroned long-time leader Apple Inc.

Amazon rose by 4.7 per cent at one point, putting its market capitalisation at USD 865.0 billion. At the same time, Apple traded up 2.1 per cent, giving it a market capitalisation of USD 864.8 billion.

Microsoft, which on Friday closed above Apple’s market capitalisation for the first time in eight years, was up 0.9 per cent, leaving its stock market value at USD 859.0 billion, third in the group.

Amazon’s lead lasted only a few seconds. At the close, Apple was back on top with a 3.49 per cent increase in its stock that put its total value at USD 877 billion. It was followed by Amazon, up 4.86 per cent with a market capitalisation of USD 866.6 billion, and then Microsoft, up 1.08 per cent and a stock market value of USD 860.4 billion.

The tight race between the trio of high-powered technology stocks coincided with a broad stock market rally after the United States and China agreed on a temporary truce in their ongoing trade dispute.

Apple in August became the first US publicly listed company to reach a USD 1 trillion market capitalisation, but its share price has fallen sharply in recent months as investors worried that demand for iPhones was losing steam.

Its market capitalisation overtook Microsoft’s in 2010 as Microsoft struggled with slow demand for personal computers, due in part to the explosion of smartphones like the iPhone.

Amazon’s stock has recovered most of the ground it lost after the online retailer in October forecast disappointing sales for the holiday quarter.

Although it is down about 13 per cent from its Sept. 4 record-high close, in the year to date Amazon’s stock is up 51 per cent, compared with a 31 per cent rise for Microsoft and Apple’s 9 per cent increase.

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