By
Godfrey Benjamin
April 23rd, 2024
This year, Microsoft stock has gained 19%, outshining Apple and Amazon which have had gains of 0.97% and 7.63% respectively.
Microsoft Corporation‘s (NASDAQ: MSFT) valuation shortly eclipsed the $2 trillion benchmark during Tuesday’s intraday trading. The stock price rose as high as $265.79, a 1.2% hike that exceeded the $265.55 share price requisite for a $2 trillion valuation. This placed it as the second public company in the US to hit the $2 trillion valuations just after Apple Inc (NASDAQ: AAPL), which is currently worth $2.2 trillion.
Nevertheless, markets closed with Microsoft shares at $265.51, just a few pennies shy from their initial mark. The company’s market capitalization now stands at 1.98 trillion. Oil company Saudi Aramco (TADAWUL: SAR), had also neared such a threshold in December 2019, but currently, its valuation stands at $1.9 million.
The surge in Microsoft stock price was motivated by high anticipation that its dominance in enterprise software and cloud computing would advance further in the post-covid world. With this, the company shares rose to hit a new 52-week high, surpassing the June 21st peak of $263.52.
Additionally, Federal Reserve Chair Jerome Powell reiterated his opinions that inflation would be short-lived as the economy gradually recovers from the pandemic. Thereafter, an all-around productive trading session ensued, with many shares advancing. Apple, for instance, gained 1.27% to $133.98, while Alphabet Inc (NASDAQ: GOOG) gained 0.33% to $141.24.
The S&P 500 Index also rose 0.51% and the Dow Jones Industrial Average rose 0.20%. The NASDAQ 100 closed up 0.9% while other indexes like the Russell 2000 gained 0.11%.
Microsoft Stock, Valuation and Financial Performance
Since assuming the CEO position in 2014, Satya Nadella has remodeled the company making it the biggest seller of cloud-computing software. Significant upgrades have been made to both infrastructure and the Office application cloud units.
Additionally, the blue-chip tech company has managed to elude scrutiny from American antitrust regulators, who have recently become increasingly active. With a clear path ahead of it, product expansion and acquisitions became more achievable.
This year, Microsoft Corp (NASDAQ: MSFT) stock has gained 19%, outshining Apple and Amazon.com Inc (NASDAQ: AMZN) which have had gains of 0.97% and 7.63% respectively. The Dow Jones Industrial Average has also risen 65% during the same period.
As the pandemic enveloped the world, investors flocked the company following rising expectations of long-term growth both in earnings and revenue. Plans to expand in cloud computing and machine learning also lured them.
Moreover, the company’s Q3 2021 financial results, released in late April, reported a $41.7 billion revenue and a $15.5 billion net income. Both values had risen by 19% and 44% in that order, due to heightened demand for the firm’s personal computers, Intelligent Could business, and workplace productivity solutions. These records exceeded expectations and showcased the great growth potential.