Microsoft, surpassing their rival Google, joins Apple and Amazon in the trillion dollar industry. Yes, Microsoft became the third company to pass the market cap of $1 trillion after a jump in stock price following the strong fiscal Q3 earnings.
Microsoft’s stock prices jumped around 4%, rising from $125 to $130 per share. The prices will stay fluctuating. Apple has been replaced as the world’s most valuable company by Microsoft and its current valuation.
The pushing of cloud products by Microsoft has paid off because thanks to their cloud growth, their stock has been pushed up. Microsoft’s goal is to catch up to Amazon’s AWS level.
The company splits its business into 3 different sections. Each of these are contributing about the same amount of money.
- 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
The only people who really care about the $1 trillion valuation are the investors. Microsoft itself does not really care. Chris Capossela, Microsoft’s chief marketing officer stated, “This is a metric that nobody on the senior leadership team is tracking.”