FAAMG are the names of the top five top-performing tech stocks on the market, namely Meta (formerly Facebook), Amazon, Apple, Microsoft and Google by Alphabet. Because of Facebook’s renaming, they have to rename themselves now. The far more appropriate acronym GAMMA is now available (Google, Apple, Microsoft, Meta, Amazon). Of course, all of this assumes that Meta is still in the top 5. After all, Tesla is currently bigger than Facebook.
But that’s not the only notable change: with a plus of 0.9 percent at the opening on Friday, Microsoft replaced Apple as the most valuable US share – and actually also the most valuable share in the world. The reason: Apple fell 3.9 percent to $ 146.65 when it opened, reaching a market value of around $ 2.42 trillion. Previously, the company had to accept a decline in sales for the first time since 2017. It also warned that a supply bottleneck would reduce sales by $ 6 billion.
Meanwhile, Microsoft has been climbing for four days in a row and is on track for its best weekly profit since January as the company’s cloud-based software contributed to robust sales and earnings growth that beat analyst estimates for the eleventh year in a row.
“If you are looking for security in the technology industry, Microsoft seems to me to be a safer bet than Apple,” said Michael Matousek, chief trader at US Global Investors. “Should there be an economic downturn, I would expect Microsoft to do better because its products are diversified across more business areas.”
In June of this year, Microsoft went down in history as it was only the second publicly traded company in the US to reach a market value of $ 2 trillion in hopes that its dominance in cloud computing and enterprise software will continue to increase in a post-coronavirus world. The company’s stocks have outperformed Apple and Amazon.com this year as it expects long-term earnings and revenue growth, as well as expansion in areas like machine learning and cloud computing. Microsoft is up more than 45 percent, while Apple is about 11 percent higher and Amazon barely higher than last year.