Microsoft's market capitalization exceeded $ 1 trillion 04/25/2019

Microsoft has become the third American company whose market value has exceeded a trillion dollars.

History of records

The first company in the history of the world stock market, the capitalization of which was more than $ 1 trillion, was the Chinese oil and gas company PetroChina, which set this record in November 2007.
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Years passed, more than a decade later, in early August 2018, Apple became the first publicly traded company in the US worth more than $ 1 trillion, currently worth $ 0.967 trillion.



A month later, in September 2018, Amazon became the second among US companies and the third in the entire history of the global stock market with a cost of more than 1 trillion dollars, at the moment its value is 0.934 trillion dollars.



And now, seven months later, Microsoft joined this top three champions, becoming April 25, 2019, the fourth company in the world whose market value exceeded $ 1 trillion.

By the way, this happened almost immediately after the publication of the quarterly report, which reflected the steady growth of all the main business areas of Microsoft.



In the first hours after the opening of trading on April 25, 2019 on the NASDAQ, Microsoft’s stock price rose briefly to $ 131.37 (maximum), as a result of which Microsoft’s market capitalization surpassed the $ 1 trillion mark.

Then the stock price fell slightly, the capitalization bar dropped to $ 992 billion, but the fact of taking the new milestone by the company was fixed.





The current situation on the status of Microsoft shares can be found here .

In addition, at the moment Microsoft - the leader in market capitalization.

At Microsoft, overall revenue for the quarter was $ 30.6 billion (+ 14%). Operating profit increased by 25% to $ 10.3 billion, net profit was $ 8.8 billion (+ 19%).

The main growth engine in Microsoft is now cloud services.

The Microsoft Azure cloud platform is the second most popular on the market after Amazon AWS, and far ahead of Google’s solution.

However, unlike business processes at Apple, Google, and other technology giants, Microsoft has a diversified business: about a third of the revenue comes from the Windows, Surface, and gaming areas, another third from the cloud services, and the rest is Office products. and other software.

The data from the latest Microsoft report on revenue from the company's branches:

• Windows, Xbox and Surface = $ 10.7 billion;
• Office, LinkedIn and Dynamics = $ 10.2 billion;
• Azure, server products and corporate services = $ 9.7 billion

Microsoft's revenue increased over the three months of 2019 by 14% to $ 30.6 billion with a profit of $ 8.8 billion.

Both figures exceeded market expectations.

Azure corporate cloud service grew by 73%, and cloud Office - by 30%. Revenue from the company's cloud services is close to a third of Microsoft's total revenue.

Microsoft has transferred to its Azure cloud service several large market customers that previously used Amazon Web Services. These are the Kroger supermarket chain, the Walgreens pharmacy chain and the Exxon Mobile oil company.

According to Microsoft Finance Director Amy Hood, several company divisions showed results higher than expected.

For example, the Productivity and Business Processes department brought revenue of $ 10.2 billion due to a 14% increase in performance. In particular, the successful quarter was in Japan, as well as for the social network LinkedIn.

Consumer demand for Office products also exceeded expectations, as did the result of the Intelligent Cloud division, which generated revenue of $ 9.7 billion (+ 22%). Office 365 currently has 180 million corporate users and 34.2 million regular subscribers. The Outlook app on Android iOS has been installed over 100 million times.

However, the largest increase in Microsoft showed server products and cloud services, the revenue growth from which was 27%. Azure showed an increase of 73%. Consumer products brought in $ 10.7 billion (+ 8%), revenues from Windows increased by 9%, from commercial Windows products and cloud services by 18%.

But the battle is just beginning, today, on Friday, April 26, 2019, after the publication of their reports, Apple and Amazon can once again increase their capitalization by returning beyond $ 1 trillion.