Stock Market Today, Jan. 8: Apple Slips After Alphabet Overtakes it on Market Cap

Leading tech giant, Apple (NASDAQ:AAPL), closed Thursday’s session at $259.04, down 0.42%. Trading volume reached 50.2 million shares, coming in roughly 10% above its three-month average of 45.6 million shares.

Investors weighed reports that Alphabet's (NASDAQ:GOOGL) stronger AI monetization has pushed its valuation ahead of Apple. Thursday's trading also reflected a reassessment of Apple’s evolving AI roadmap. Apple IPO'd in 1980 and has grown over 200,000% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) finished flat at 6,921, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.44% to 23,480. Within Technology Hardware, Storage & Peripherals, peers Dell Technologies (NYSE:DELL) fell slightly and HP (NYSE:HPQ) gained, as investors compared Apple’s offering against new PC launches and gaming-focused products.

What this means for investors

Alphabet has overtaken Apple by market capitalization, pushing the popular brand to third place in the most-valuable companies list. Apple shares are down almost 7% in the past month, as investors question how its AI capabilities stack up against other tech leaders.

In contrast, Alphabet has taken a leading role in the AI race with positive reaction to its Gemini 3 model at the end of last year. The company has gained almost 4% in the past month and 87% in the past six months.

Investors will be watching carefully to see whether Apple Intelligence can gain traction this year and how it navigates a shake up in its management team.

Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and HP. The Motley Fool has a disclosure policy.