Microsoft became the third American company to surpass a market value of one trillion dollars.
Record History
The first company in the history of the global stock market to have a capitalization exceeding one trillion dollars was the Chinese oil and gas company PetroChina, which set this record in November 2007.
Years passed, and over a decade later, in early August 2018, Apple became the first publicly traded company in the U.S. to be valued at over one trillion dollars; at that time its value was 0.967 trillion dollars.
A month later, in September 2018, Amazon became the second among American companies and the third in the entire history of the global stock market with a value exceeding one trillion dollars; its current value is 0.934 trillion dollars.
And then, seven months later, Microsoft joined this trio of record holders, becoming the fourth company in the world to surpass a market value of one trillion dollars on April 25, 2019.
Interestingly, this happened almost immediately after the quarterly report was published, which reflected stable growth in all major business areas of Microsoft.
In the first hours after trading opened on April 25, 2019, on the NASDAQ exchange, Microsoft’s stock price temporarily rose to $131.37 (maximum), resulting in Microsoft's market capitalization surpassing the one trillion dollar mark.
Then the stock price slightly declined, and the capitalization fell to $992 billion, but by the company was recorded.
The current situation regarding Microsoft's stock .
Moreover, Microsoft is currently the leader in market capitalization.
Overall, Microsoft's quarterly revenue was $30.6 billion (+14%). Operating income increased by 25% to $10.3 billion, while net income was $8.8 billion (+19%).
The main driver of growth for Microsoft now is its cloud services.
Microsoft's Azure cloud platform is the second most popular in the market after Amazon AWS, significantly outpacing Google's solution.
However, unlike the business processes at companies like Apple, Google, and other tech giants, Microsoft's business is diversified: about one third of its revenue comes from Windows, Surface, and gaming divisions, another third is from cloud services, and the remaining part is from Office products and other software.
According to the latest Microsoft revenue report by company divisions:
— 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 grew by 14% to $30.6 billion with a profit of $8.8 billion over the three months of 2019.
Both figures exceeded market expectations.
The corporate cloud service Azure grew by 73%, while cloud Office increased by 30%. Revenue from the company's cloud services approached one third of Microsoft's total revenue.
Microsoft has transitioned several large clients to its Azure cloud service, which previously used Amazon Web Services. These include the supermarket chain Kroger, the pharmacy chain Walgreens, and the oil company Exxon Mobil.
According to Microsoft CFO Amy Hood, several of the company's divisions reported results higher than expected.
For example, the Productivity and Business Processes department generated $10.2 billion in revenue due to a 14% increase. Notably, 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 results from the Intelligent Cloud division, which brought in $9.7 billion (+22%). Office 365 now has 180 million corporate users and 34.2 million regular subscribers. The Outlook app on Android and iOS has been installed more than 100 million times.
However, the most significant growth at Microsoft came from server products and cloud services, which saw a revenue increase of 27%. Azure experienced a 73% growth. Consumer products generated $10.7 billion (+8%), Windows revenue grew by 9%, and revenues from commercial Windows products and cloud services grew by 18%.
But the battle is just beginning; already today, Friday, April 26, 2019, following the publication of their reports, Apple and Amazon could once again increase their market capitalizations, returning above $1 trillion.
Source: habr.com
