Apple is now worth $540 billion less than Microsoft — a Tesla-sized gap

Composite image of Microsoft CEO Satya Nadella, left, and Apple CEO Tim Cook
Microsoft CEO Satya Nadella and Apple CEO Tim Cook.Stephen Brashear/Getty Images, AP
  • Apple is worth a whopping $540 billion less than Microsoft, a gap the size of Tesla's market value.

  • The iPhone maker's shares are down 11% this year, while the software giant's are up 14%.

  • Apple is facing growth concerns and regulatory fights, while Microsoft is riding high on AI buzz.

Apple was the world's most valuable public company at the end of 2023 but is now worth an astounding $540 billion less than Microsoft — a gap equivalent to Tesla's entire market value.

The iPhone maker's market capitalization stood at $2.65 trillion at Thursday's close, compared to $3.19 trillion for Microsoft. Apple was worth $3 trillion, or about $200 billion more than Microsoft, at the end of December.


The gap in market value reflects the difference in how their stocks have performed this year. Apple shares have slumped 11%, while Microsoft's shares have jumped 14%.

Apple's slide is a product of the many challenges facing CEO Tim Cook. The tech giant's new Vision Pro headset has been met with skepticism, and it has reportedly scrapped its plans to build a car after years of development.

Apple has also suffered a slowdown in China sales. Moreover, it was fined nearly $2 billion by EU competition regulators earlier this month for abusing its market dominance to hurt Spotify and other music-streaming apps.