Microsoft's market capitalization exceeded $ 1 trillion 04/25/2019
Microsoft has become the third US 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 has become more than $ 1 trillion, was the Chinese oil and gas company PetroChina, which set this record in November 2007.
Years passed, more than a decade later, at the beginning of August 2018, Apple became the first public company in the United States worth more than $ 1 trillion, at the moment its cost is 0.967 trillion dollars.
A month later, in September 2018, Amazon became the second among American companies and the third in the history of the world stock market with a value 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 areas of Microsoft business.
In the first hours after the opening of trading on April 25, 2019 on the NASDAQ exchange, the Microsoft stock price briefly increased to $ 131.37 (maximum), as a result of which Microsoft's market capitalization exceeded the $ 1 trillion mark.
Then the share price fell slightly, the capitalization bar fell to $ 992 billion, but the fact of taking a new milestone by the company was recorded.
The current situation on Microsoft stock status can be found here .
In addition, Microsoft is currently a leader in market capitalization.
At Microsoft, total revenue for the quarter was $ 30.6 billion (+ 14%). Operating profit grew 25% to $ 10.3 billion; net profit was $ 8.8 billion (+ 19%).
The main growth engine at Microsoft is now cloud services.
The Microsoft Azure cloud platform is the second most popular on the market after Amazon AWS, and is far ahead of Google’s solution.
However, unlike the business processes at Apple, Google, and other technology giants, Microsoft has diversified its business: about a third of revenue comes from Windows, Surface, and gaming, another third comes from cloud services, and the rest is from Office products and other software.
Data from the latest Microsoft report on revenue from company lines:
- Windows, Xbox and Surface = $ 10.7 billion;
- Office, LinkedIn and Dynamics = $ 10.2 billion;
- Azure, server products and enterprise services = $ 9.7 billion
Microsoft's revenue for the three months of 2019 increased by 14% to $ 30.6 billion with a profit of $ 8.8 billion.
Both indicators exceeded market expectations.
Azure Enterprise Cloud Services grew 73% and Cloud Office Services 30%. Revenue from the company's cloud services approached one-third of all Microsoft revenue.
Microsoft has migrated several large market customers that previously used Amazon Web Services to its Azure cloud service. These are Kroger supermarket chain, Walgreens pharmacy chain and Exxon Mobile oil company.
According to Microsoft CFO Amy Hood, several divisions of the company showed results higher than expected.
For example, Productivity and Business Processes generated revenue of $ 10.2 billion thanks to an increase of 14%. In particular, the quarter was successful in Japan, as well as for the social network LinkedIn.
Consumer demand for Office products also exceeded expectations, as did the Intelligent Cloud division, which generated $ 9.7 billion in revenue (+ 22%). Office 365 now has 180 million corporate users and 34.2 million regular subscribers. The Outlook app on Android iOS has been installed more than 100 million times.
However, the largest growth in Microsoft showed server products and cloud services, revenue growth from which amounted to 27%. Azure showed an increase of 73%. Consumer products generated $ 10.7 billion (+ 8%), revenue from Windows grew by 9%, and from commercial Windows products and cloud services by 18%.
But the battle is just beginning, today, Friday, April 26, 2019, after the publication of its reports, Apple and Amazon can again increase their capitalization by returning beyond $ 1 trillion.