Could Apple displace Exxon on the top of the Standard and Poor’s 500? That’s the opinion of one analyst who believes the Cupertino, Calif. company may overtake history’s largest corporation in terms of market capitalization as soon as October 18, when it reports earnings.
Unless Exxon shares rise, Apple will likely gain 12 percent to make up the $60 billion difference, according to Brian Marshall, analyst with Gleacher & Company. The move will mark only the second time a tech company takes first place on the S&P 500. Microsoft, which briefly held the top spot in the 1990s before falling to second place on the S&P, was overtaken by Apple in May.
Apple’s ascension would have a lasting impact on the market. Not only is the slot used by managers of billion-dollar funds as a gauge for investing, the move could also signal the waning dominance of companies which manufacture or produce goods. Apple, on the other hand, is all about services – be it iTunes for music, the App Store for applications or Apple TV for video.
In a further sign of this reconfiguration toward mobile, Microsoft was downgraded Monday to “Neutral” from “Buy.” Goldman Sachs analyst Sarah Friar warned investors Microsoft’s “intrinsic value” could not be unlocked if the company remains on its present course. The Windows maker is seeing its notebook market eroded by the iPad and Android-powered tablets. Friar suggested Microsoft develop a “coherent consumer strategy” that might mean jettisoning gaming.
