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.
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%.
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.
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.”
Amazon and Google are the top contenders to join the $2T club next.
Photo: Przemyslaw Marczynski/Unsplash