In 2018, Apple hit $1 trillion in market capitalization, a value that was much greater than Amazon's market cap despite Amazon having a much higher stock share price. In 2020, Apple was the first to hit $2 trillion. In 2022, Apple was again the first. They reached the $3 Trillion level of market capitalization. Currently, Apple's market value is quite larger than Microsoft's. Despite this, Apple's share price is substantially less than Microsoft's share price.

1) Based on your readings from the textbook, explain why this difference exists.

2) Why do you believe investors are willing to pay more to invest in Microsoft when it is worth less than Apple?

 

3) Which company would you rather invest in and why? You have to pick one?

 

Answer rating: 100% (QA)

Understanding Market Capitalization vs Stock Price The difference between Apple and Microsofts valuations highlights the distinction between market ca... View the full answer