Microsoft became the third American company whose market value exceeded a trillion dollars.
History of records
The first company in the history of the world stock market whose capitalization exceeded $1 trillion was the Chinese oil and gas company PetroChina, which set this record in November 2007.
As the years passed, more than a decade later, in early August 2018, Apple became the first publicly traded company in the United States to be worth over $1 trillion, currently worth $0.967 trillion.
A month later, in September 2018, Amazon became the second American company and the third in the history of the global stock market with a value of more than $1 trillion, currently worth $0.934 trillion.
And now, seven months later, Microsoft joined this trio of record holders, becoming on 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 stable growth of all major areas of Microsoft's business.
In the first hours after the opening of trading on April 25, 2019 on the NASDAQ exchange, Microsoft's share price briefly rose to $131.37 (maximum), as a result of which Microsoft's market capitalization exceeded the $1 trillion mark.
Then the share price dropped slightly, the capitalization bar dropped to $992 billion, but was recorded by the company.
Current situation regarding Microsoft shares .
In addition, Microsoft is currently the leader in market capitalization.
Microsoft's overall revenue for the quarter was $30,6 billion (+14%). Operating profit increased by 25% to $10,3 billion, net profit amounted to $8,8 billion (+19%).
Cloud services are now the main engine of growth at Microsoft.
The Microsoft Azure cloud platform is the second most popular on the market after Amazon AWS, and is significantly ahead of the solution from Google.
However, unlike the business processes at Apple, Google and other technology giants, Microsoft's business is diversified: about a third of revenue comes from Windows, Surface and gaming divisions, another third of revenue comes from cloud services, and the rest comes from Office products and other software.
Data from Microsoft's latest revenue report from the company's businesses:
β Windows, Xbox and Surface = $10,7 billion;
β Office, LinkedIn and Dynamics = $10,2 billion;
β Azure, server products and enterprise services = $9,7 billion.
Microsoft's revenue grew in the three months of 2019 by 14% to $30,6 billion with a profit of $8,8 billion.
Both figures exceeded market expectations.
Enterprise cloud service Azure 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 several large market customers who previously used Amazon Web Services to its Azure cloud service. These are the Kroger supermarket chain, the Walgreens pharmacy chain and the oil company Exxon Mobile.
According to Microsoft CFO Amy Hood, several of the company's divisions performed better than expected.
For example, Productivity and Business Processes generated revenue of $10,2 billion thanks to growth 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 revenue of $9,7 billion (+22%). Office 365 now has 180 million enterprise users and 34,2 million regular subscribers. The Outlook app on Android iOS has been installed more than 100 million times.
However, the biggest growth at Microsoft was shown by server products and cloud services, with revenue growth of 27%. Azure showed growth of 73%. Consumer products brought in $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 their reports, Apple and Amazon can again increase their capitalization, returning above $1 trillion.
Source: habr.com