Microsoft Hits $2 Trillion Valuation

Microsoft Corp. has become the second U.S. public corporation to surpass a market value of $2 trillion, boosted by expectations that its dominance in cloud computing and corporate software could expand further in a post-coronavirus world.

The technological firm is the second American enterprise to reach such an appreciation, following Apple (AAPL). The $2 trillion mark was already surpassed in 2019 by publicly operating oil company, Saudi Aramco, however it had a mark limit of $1.88 trillion on Tuesday.

While it took Microsoft 33 years from its IPO to achieve $1 trillion in market capitalization in 2019, the next trillion only took two years, thanks to a rise in interest in tech companies prior to the Covid-19 epidemic and throughout the health crisis.

The market value of Microsoft (MSFT) on Tuesday reached over $2 trillion, closing only $300 million shy. Tuesday’s shares rose 1.1% to $265.5.

This rise was linked to Covid-19, as people spent more time on their gadgets as a result of the epidemic, which then increased demand for Microsoft’s PCs, gaming systems, and cloud computing platform. Hence, the company’s stock rose as a result of a stock market rise, as well as the performance of IT businesses.

Furthermore, Microsoft’s cloud-computing division has been a driving factor in the progress. According to Bloomberg statistics, Microsoft’s Intelligent Cloud division will account for 33.8 percent of the company’s 2020 revenue, up from 31% in 2019. Last year, the division grew by 24 percent in sales, compared to 13 percent for Productivity and Business Processes, and 6 percent for Microsoft’s More Personal Computing segment.

Microsoft has benefited from business trends that developed during the worldwide pandemic as a result of its CEO, Satya Nadella’s strategic actions. Lockdowns and remote work hastened the transition to the company’s meeting software, and clients have been driven to expedite software network and application modernizations in the cloud. Xbox gaming subscriptions enticed consumers searching for something to do while trapped at home during the winter months.

Last August, Apple made Wall Street history by becoming the first company to exceed $2 trillion in market capitalization, and it now stands at $2.24 trillion. Microsoft (MSFT) has already joined the group, with Amazon (AMZN) and Google (GOOGL GOOGLE) following closely after. On Tuesday, Amazon’s market worth surpassed $1.77 trillion, while Alphabet surpassed $1.67 trillion.



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