Strong earnings push Microsoft toward a new milestone to become a $1 trillion company ahead of Google.
Microsoft is now a trillion valuation company which has become the third US company to pass a market cap of $1 trillion. The software company achieved this success earlier today after stock price went up today following strong fiscal Q3 earnings.
Stock price of Microsoft opened at $130 per share today and went up around four percent from the $125 closing price yesterday – while the stock price will likely fluctuate a lot today, the company has hit the $1 trillion market valuation during NASDAQ day trading hours this morning. Microsoft’s current valuation also means that it has again taken over Apple as the world’s most valuable company, after briefly passing Apple back in November.
Thanks to its cloud growth being the reason why Microsoft’s stock has been pushed up . The software maker has been pushing its cloud products in recent years, and the company is aiming to catch up to Amazon’s AWS dominance. Microsoft’s Azure is currently second behind Amazon for cloud services, and ahead of Google’s own offerings.
Latest earnings in Microsoft also revealed that the three main buckets of company splits its businesses up into are all doing well and roughly contributing the same amount of revenue this quarter (around 30 percent each).
- Office, LinkedIn, and Dynamics = $10.2 billion in revenue
- Azure cloud, server products, and enterprise services = $9.7 billion in revenue
- Windows, Xbox, and Surface = $10.7 billion in revenue
Even though the $1 trillion valuation is something that investors pay close attention to, it’s not something that the tech giant Microsoft cares about. “This is a metric that nobody on the senior leadership team is tracking,” said Chris Capossela, Microsoft’s chief marketing officer at an event attended by GeekWire last year. “Nobody is sitting around high-fiving when the stock hits some new high.”