Microsoft Finally hits $1 trillion market valuation!

Microsoft Finally hits $1 trillion market valuation!

James Morrissey

The US software superpower Microsoft has briefly passed 1 trillion-dollar mark on Thursday before its share price fell back. Microsoft joins an elite club being one of only three public firms to have hit the $1t mark, the others being Apple and Amazon. Apple and Amazon hit the $1t mark for the first time last year, but both fell back due to a downturn in global markets.

Microsoft’s stock has climbed by about a third in the past year. This is primarily because of the growth of its cloud business. Microsoft is best known for its Windows operating system, but it makes more money from its Azure cloud services and Office software package.

The CEO of Microsoft, Satya Nadella continues to push the company in the right direction. Over the past 5 years, he has lessened the company’s reliance on its once-dominant Windows operating system.

Microsoft has reported a 14% increase in the fourth quarter. This could very well be linked to Nadellas plan to keep growing. Net profit also surged 19% to $8.8 billion.  The $1t milestone definitely turns heads but what does that mean for Microsoft? In the past, Microsoft executives have dismissed the importance of the big number.

According to BBC News, Chris Capossela, Microsoft’s Chief Marketing Officer and Executive Vice President of Consumer Business, stated that “This is a metric that nobody on the senior leadership team is tracking,” He would go on to say, “Nobody is sitting around high-fiving when the stock hits some new high.”