Software giant Microsoft has now become the third company in the United States to cross a market capital of $1 trillion. The company today passed the milestone briefly after a jump in stock price, which followed strong fiscal Q3 earnings. Microsoft has joined Apple and Amazon in hitting the $1 trillion valuation. It is worth noticing that as of now, Google has not been able to hit this mark.
The stock price of the software giant at $130 per share today, which is around a 4% increase from the $125 closing price yesterday. While the stock price is expected to fluctuate, Microsoft has already hit the $1 trillion market within the NASDAQ day trading hours today. The company’s current valuation also goes to show that Microsoft has again taken over Cupertino-based technology giant Apple as the world’s most valuable company. This comes after Microsoft briefly passed Apple in November.
The company’s stock has gone up because of its growth in cloud. Microsoft has made a lot of efforts in pushing its cloud products in the recent years and now, the company is eyeing to catch up to Amazon’s AWS dominance. It is also worth pointing out that as of now, Azure is second behind Amazon for cloud services and it is ahead of Google’s own offerings.
The software company’s latest earnings have revealed that the three main buckets in which Microsoft has split its businesses are doing well and are more or less contributing the same amount of revenue this quarter – around 30% each. Here’s a look at the revenue break up:
- Office, Dynamics and LinkedIn = $10.2 billion
- Azure cloud, enterprise services and server products = $9.7 billion
- Windows, Surface and Xbox = $10.7 billion
We should mention that the $1 trillion valuation is something that investors would really care about, even if Microsoft does not. Speaking on this, Chris Capossela, Microsoft’s chief marketing officer had said last year, “This is a metric that nobody on the senior leadership team is tracking. Nobody is sitting around high-fiving when the stock hits some new high.”
It is also worth adding that Cupertino based technology giant Apple was the first ever company to cross the $1 trillion mark. The smartphone company was closely followed by e-commerce giant Amazon. Both the companies crossed the $1 trillion valuation last year itself. As we mentioned earlier, Google is yet to reach the market value, but then, it’s only a matter of time.
For the latest gadget and tech news, and gadget reviews, follow us on Twitter, Facebook and Instagram. For newest tech & gadget videos subscribe to our YouTube Channel. You can also stay up to date using the Gadget Bridge Android App.