IBM Unseats Microsoft As Second Most Valued Tech Company

First time accepted submitter FlatEric521 writes "The BBC is reporting that for the first time since 1996 IBM's market value has exceeded Microsoft's. The values cap a sustained period in which IBM's share price has moved steadily upward as Microsoft's has generally been in decline. Of course, Apple is still the #1 company by far."

Stock market fluctuations

[bjourne]

Apple is the largest tech company followed by IBM and Microsoft, if measured by how much the stock market thinks each company is valued at. It is a completely meaningless metric that does not say anything about either company. The stock market is detached from the real world and how well a company's stock is doing is not proportional to how well that company is doing.

A massive economic downturn is perfect for Apple

[Anonymous Coward]

Actually, downturn markets are great for companies like Apple, as their success in the last couple years should demonstrate. You see, in times like this, people cannot afford or feel they cannot afford real luxury items: vacations, expensive cars, bigger houses, pools, early retirement, so on. But people still like to treat themselves to a luxury. Apple is right in the sweetspot for this: pretty much everybody with a job can afford an Apple product or two, and they will sacrifice other things to get one just to feel like they have luxuries.

It is called the lipstick principle. You can read about it here:
http://www.nytimes.com/2008/05/01/fashion/01SKIN.html?pagewanted=all