Microsoft’s Staggering New Valuation Makes It Second US Company Ever To Reach Milestone
Microsoft reached a staggering new milestone following a market valuation this week, which places it second only to Apple.
It’s no secret that Microsoft is one of the biggest companies out there, and while the coronavirus pandemic left many businesses struggling, the tech giant benefitted from people spending more time at home and connecting with others through their devices.
The company’s shares have gained 19% so far this year, outperforming the likes of Apple and Amazon, and a more recent rise in stock price is believed to be down to investors hoping that its position as a leader in cloud computing will prompt further global growth.
Microsoft’s shares gained 1.2% on New York’s Nasdaq on Tuesday, June 22, allowing the Washington-based company to cross the threshold of a $2 trillion market valuation and join Apple in being one of only two US companies to do so.
Share prices dropped slightly ahead of the market’s closure, ending at $265.51 per share, for a $1.96 trillion market cap. Meanwhile, Apple’s market valuation stands at $2.24 trillion after first passing the $2 trillion mark last August, when it became the first US company to do so.
Also on Tuesday, Dan Ives of Wedbush, one of the leading wealth management, brokerage and advisory firms in the United States, raised his 12-month price target for Microsoft to $325 from $310, giving it an ‘outperform’ rating.
‘With workforces expected to have a heavy remote focus, we believe the cloud shift is just beginning to take its next stage of growth globally,’ the tech analyst said in a note, per Markets Insider.
We believe this disproportionally benefits the cloud stalwart out of Redmond, as [Microsoft CEO Satya] Nadella & Co. are so well positioned in its core enterprise backyard to further deploy its Azure/Office 365 as the cloud backbone and artery.
Microsoft’s $2 trillion market valuation comes just over two years after it first passed the $1 trillion market cap mark.
Since the outbreak of coronavirus in March 2020, Microsoft’s stock has gained 64%, CNN reports. In April, CEO Nadella noted that ‘digital adoption curves’ did not appear to be slowing down more than a year into the pandemic, adding: ‘We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.’
Though Apple and Microsoft are part of an elite club in surpassing the $2 trillion mark, Amazon and Alphabet, which owns Google, were nipping at the heels of the companies on Tuesday, when Amazon’s market cap hit $1.77 trillion and Alphabet’s reached $1.67 trillion.
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