Microsoft has taken its place in the history books as the second U.S. public company to reach a market value of $2 trillion. Management is confident that its dominance in cloud computing and enterprise software will continue to expand in the post-coronavirus world.
Microsoft shares rose 1.2 percent in New York on Tuesday, enough for the company to join Apple as one of only two companies trading this high at $265.51. That boosted the company’s value to $2 trillion. Saudi Aramco briefly surpassed that threshold in December 2019, but now has a market value of about $1.9 trillion.
Since taking over in 2014, CEO Satya Nadella has transformed the Redmond-based company into the largest seller of cloud computing software, considering both its infrastructure and cloud-based Office application divisions. Microsoft is also one of the largest U.S. technology companies, which has so far dodged the recent wave of scrutiny from increasingly active U.S. antitrust regulators, giving it more freedom in both acquisitions and product expansions.
Microsoft has added 19 percent this year, outperforming Apple and Amazon.com, as investors invested in the stock with expectations of long-term earnings and revenue growth, as well as expansion in areas such as machine learning and cloud computing. The company’s third-quarter results, released in late April, exceeded expectations and showed strong growth across all business segments.