Sunday , July 25 2021

Microsoft has reached a market value of $ 1 trillion

Microsoft CEO Satya NadelaCopyright on the image
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Microsoft CEO Satya Nadela

Microsoft has seen the value of its stock market reach $ 1 trillion after having seen better than expected sales and profits.

The US software giant transferred the mark shortly on Thursday before the stock price dropped.

This makes it one of only three public companies that have reached the mark of $ 1tn and the rest are Apple and Amazon.

Microsoft's shares rose by about a third in the past year, thanks to the growth of cloud business.

On Wednesday, the company said revenue grew 14 percent to 30.6 billion dollars in the fourth quarter, thanks to higher cloud growth and an unexpected boost for its software.

Net profit rose 19 percent to $ 8.8 billion.

Copyright on the image
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Image caption

Microsoft also earns money from Bing search engine data

Continuing the strong performance seen with chief Satya Nadela, who has spent the past five years trying to reduce the company's dependence on the ever-dominating Windows operating system.

Apple and Amazon reached the mark $ 1tn for the first time last August and September, respectively, but both declined towards the end of the year amid falling global markets.

PetroChina for a short time cost about $ 1.1 tons after sailing in Shanghai in 2007, although most of its shares were held by the Chinese government. Now it's worth about $ 200 billion.

While $ 1tn milestone conceals titles, Microsoft's managers have rejected its significance in the past.

"This is an indicator that none of the senior management teams track," said Chris Caposela at an event last year.

– No one sits high when the shares collide with a new peak.

Analysis: Chris Fox, Technology Reporter

Microsoft may be best known for its Windows operating system, but it earns more money from its cloud services and Office software suite.

While Apple makes more than 50% of its money from the iPhone and Amazon from its online store, Microsoft's power sticks its fingers in a few pie.

In 2018 Windows brought about 18% of Microsoft's revenues, and Office – 25%.

Its smaller gaming and Xbox division led to around 9%, while the hardware of its own brand, like Surface Tablets, was about 5%.

Surprisingly, Bing's search engine is also surprisingly profitable: its data capture some of the latest intelligent speakers, including Alexa.

Microsoft's involvement in so many growing markets clearly has investors hoping for its future.

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