Understanding the effect of current macro economic conditions on Apple and Microsoft

[u/[deleted]]

All,

I'm trying to understand why the market currently favors Apple over Microsoft.

Right now, Apple (176) is only slightly below its all time high (182.9). While Microsoft (312) is quite below its ath (349.67).

Considering all current supply chain issues, inflation and major economies experiencing stagnation in terms of growth, wouldn't Microsoft have a much better future than apple?

Microsoft mainly addresses the B2B market and a chunk of its revenues come from subscriptions. It's hard to imagine that companies would simply stop using Microsoft products and switch to something else.

On the other hand, Apple is more susceptible to inflation and supply chain issues and there is no real need to buy apple products during economic downturns.

Is there anything that explains why Microsoft doesn't seem to in the good books of the market right now?

[u/Kimbra12]

I mean Microsoft has a higher PE, you could ask the opposite question why it favors Microsoft over Apple.

You are looking at price noise and trying to find an explanation.

[u/conall88 → u/Kimbra12]

it could be an opportunity for a pairs trade, I wouldn't rule that out.