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Microsoft was established by Bill Gates and Paul Allen on April 4, 1975. Since then, the company has been always among the top tech companies not just the US but also around the world.
The company boost up the threshold as shares rose as much as 1.2% before sliding back a little to close at $265.51, up 1.1%, and giving the company a closing market cap of $1.99 trillion. This breakthrough is the biggest achievement as it comes two years after the company surpassed the $1 trillion market cap mark.
Microsoft entered this market cap limit roughly 10 months after its fellow tech giant Apple hit the mark in August 2020. Apple is currently the only company in the market which reached $ 2.23 trillion in the US public company category.
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Microsoft became the second U.S. company after tech giant Apple Inc., to have a market capitalization above $2 trillion. Apple is now worth about $2.2 trillion. Microsoft’s stock price has gained over 19% this year, compared to Apple’s 1% and Amazon.com Inc.’s 7%.
Microsoft’s shares have been boosted, in part, by the pandemic as well as accelerated digital transformation and adoption of Microsoft 365 by organizations to work out their remote and hybrid work strategy has helped Microsoft to power through. And, incidentally, after facing antitrust charges in the 1990s, Microsoft is the only big technology company in the US right now that has avoided the busy antitrust regulators in recent times. During the pandemic period, Microsoft reported strong demand for its cloud-computing service, workplace-productivity solutions, and personal computers. The company’s 3rd quarter results trumped expectations driven by strong growth across its business segments. Microsoft CEO Satya Nadella said,” Over a year into the pandemic, digital adoption curves aren’t slowing down”.
According to data gathered by Bloomberg, the Intelligent Cloud business accounted for 33.8% of Microsoft’s 2020 revenue, making it the largest of the three major segments for the first time, and up from 31% in 2019. The division showed revenue growth of 24% last year, compared with the 13% growth in Productivity and Business Processes, and the 6% growth of Microsoft’s.
Amazon and Google are also gunning to join the $2 trillion club. Coming in at No. 3 on the list of largest tech companies by market cap is Amazon, with a $1.76 trillion valuation, followed closely by Google’s $1.67 trillion.