Microsoft reached the market capitalization value of $3 trillion, the first time in its 48-year history. It is the second company, after Apple, to reach the valuation milestone after that Microsoft shares rose 1.5% in trading on the NASDAQ on Wednesday.
The very high value of Microsoft
Apple first reached the $3 trillion market cap two years ago, more than a year after crossing the $2 trillion mark in 2020. Microsoft and Apple have swapped places for the world’s most valuable company in recent weeks, with Microsoft briefly overtaking Apple earlier this year. month.
The rally of recent months has raised the value of Microsoft
Microsoft shares recorded a rally in recent months, as the company continues to ride the investor AI bandwagon. Microsoft announced pricing for its Copilot service for Microsoft 365 last year, with investors responding with a notable increase in the stock price. In recent months, the company hasn’t slowed down on AI announcements, with new features and products on an almost weekly basis.
MUNICH, GERMANY – DECEMBER 26, 2018: Microsoft logo at the company office building located in Munich, Germany
Microsoft’s stock price has contributed to its value
Over the past five years, the stock price Microsoft it went from $107 in January 2019 to the current price of around $404. This is a huge turnaround from the stock price that remained stable during former CEO Steve Ballmer’s years in office. Microsoft CEO Satya Nadella took over the company nearly 10 years ago, with acquisitions of Minecraft developer Mojang, LinkedIn, GitHub and Xamarin helping Microsoft navigate a world where it failed to have a mobile presence with Windows Phone.
The leap occurred thanks to AI
In recent years, Microsoft, under Nadella, has also acquired several artificial intelligence companies and has invested more than $10 billion in OpenAI. The investments have paid off in Microsoft’s race to put AI at the forefront of its software and services with Copilot, and we may get a better idea of how it’s performing in terms of revenue next week during the report on Microsoft’s fiscal second-quarter 2024 earnings.
