Microsoft has become the second US public company to join what was previously an Apple exclusive: the $2T company club …
CNET reports that the company’s achievement was rather brief.
However, it would take only the smallest upward movement to restore its membership, so we can expect the position to be permanent within a day or so.
The company hit the threshold as shares rose as much as 1.2% before sliding back a little to close at $265.51, up 1.1%, and giving the company a closing market cap of $1.99 trillion. The milestone comes two years after the company surpassed the $1 trillion market cap mark.
Microsoft hit the lofty market cap roughly 10 months after fellow tech giant Apple hit the mark in August 2020. Apple currently has a market cap of $2.23 trillion.
Oil company Saudi Aramco, which trades on the Saudi Tadawul exchange, surpassed the $2 trillion mark on its second day of trading in 2019 but had a market cap of $1.88 trillion on Tuesday […]
In April, Microsoft posted a third-quarter profit of $14.8 billion, up 38% from the same period last year. Revenue for the quarter was up 19%.
As with Apple, Microsoft has found itself a beneficiary of the pandemic. Working from home has driven demand for the company’s hardware, especially the Surface range. A greater need for home entertainment has also helped Xbox sales. But the greatest impact was likely increased use of the company’s software and cloud computing services.
While COVID-19 may have sped up demand, Microsoft believes that the underlying trend will continue.
“Over a year into the pandemic, digital adoption curves aren’t slowing down,” Microsoft CEO Satya Nadella said in a statement at the time. “They’re accelerating, and it’s just the beginning.”
Photo: Przemyslaw Marczynski/Unsplash
