Microsoft stock prices rose sharply on Friday trading session, bringing the world’s largest “software empire” capitalization to over $ 1 trillion.
At closing, Microsoft shares rose 2.8%, far exceeding the 1.02% increase of the Dow Jones, closing at $ 131.4 / share. This price “dumped” the old record of 130.6 USD / share set on April 30. As a result, Microsoft’s market capitalization at the end of the session reached USD 1,008 billion.
With this capitalization, Microsoft is the most expensive public company in the US, at the same time leading with a gap of over $ 100 billion compared to its two closest competitors, Amazon.com and Apple.
According to MarketWatch, Microsoft stock prices have risen 9.7% in the last 4 sessions, marking the best 4-day session in nearly 4 years. Previously, in October 2015, this stock had 4 sessions with a total increase of 12.4%.
Amazon shares rose 2.6% on Friday, but are now 11.8% lower than the record close set on September 4 last year.
Apple shares rose 2.5%, but fell 18.2% from the record set on October 3.
The market capitalization of Amazon and Apple is currently at 886.1 billion USD and 873.9 billion USD respectively.
Microsoft capitalization exceeded $1,000 billion.
Previously, Microsoft had only once reached the “trillion dollar” capitalization mark when it closed. It was April 30, when the company’s market capitalization reached $ 1,001 billion at about a week after announcing better business results than forecast.
In addition to the cloud computing business, Microsoft shares have increased in value thanks to the company avoiding a antitrust investigation by US authorities.
This week, US authorities warned of possible antitrust investigation of a series of major US technology firms including Amazon, Apple, Facebook, and Alphabet – Google’s parent company. Microsoft may not be “questioned” by authorities this time, having been investigated by the US Justice Department in the late 1990s and early 2000s.
From the beginning of the year until now, Microsoft shares rose 29.5%, while Amazon shares rose 19.8%, Apple increased 20.4%, compared with 11.5% increase of the Dow Jones.
The largest capitalized listed companies.
In recent months, three “big guys”, including Microsoft, Apple and Amazon, have held the position of America’s largest capitalized listed company.
Azure, Microsoft’s main cloud product, competes strongly with market leader Amazon Web Services (AWS) to provide cloud capacity for businesses.
In the first quarter of this year, Azure’s revenue growth reached 73%, down from 76% achieved in the fourth quarter, but still a very positive figure. Analysts predict that Azure will bring Microsoft $ 13.5 billion in revenue in fiscal year 2019, with annual growth of 75%.
Revenue from Windows increased 9% over the same period in 2018, exceeding the forecast and was “an upstream” from the 5% decrease in the fourth quarter.
However, Microsoft’s report has two disappointing points for investors. Firstly, gaming revenues, including Xbox gaming consoles, only increased 5%, compared with the previous quarter’s 8% increase. And secondly, revenue from Surface equipment increased by 21%, compared with a 39% increase in the quarter 4/2018.
Microsoft’s total revenue for the quarter rose 14% to $ 30.57 billion, surpassing the forecast of $ 29.84 billion previously released by analysts.
Net profit reached 8.81 billion USD, up 18.7% over the same period last year.