Η Microsoft Corp. became their second public company USA in history, with a market value of $ 2 trillion, based on bets that its dominance in cloud computing and corporate software will expand further into the post-pandemic world.
Shares rose 1,2 percent in New York on Tuesday, enough for the software company to join Apple Inc. one of the two companies trading at such a high price. Saudi Aramco also reached this limit for a while in December 2019, but currently has a purchase value of about $ 1,9 trillion.
Ever since the CEO took over the reins Satya Nadella, in 2014, has restructured the Washington-based Redmond, Washington company into the largest cloud-computing software vendor. Microsoft is also the only major US tech company to have avoided the recent wave of control by increasingly active US antitrust regulators, giving it more freedom in both markets and product expansion.
Microsoft has gained 19% so far this year, beating Apple and Amazon.com Inc., as investors rely on long-term expectations for both profit and revenue growth and expansion into areas such as machine learning and cloud computing. . The results of the third quarter of the company, which were released at the end of April, exceeded expectations and showed strong growth in the business sectors.
Microsoft "deals with many and does everything well: gaming, cloud, automation, analytics, AI", Said the Hilary Frisch, her senior researcher Clearbridge Investments «It is an attractively valuable technology name and should benefit from both the opening up of the economy and a more drastic change to the cloud.»
While it took Microsoft 33 years to reach the first $ 1 trillion in value in 2019, the next one took about two years amid the growing popularity of technology stocks before and during the Covid-19 pandemic. health crisis. Apple made history on Wall Street when it reached $ 2 trillion last year.
Other U.S. companies that follow are Amazon, which has a market cap of about $ 1,8 trillion, and Alphabet Inc., which is valued at about $ 1,6 trillion.
According to data gathered by Bloomberg, more than 90% of analysts recommend the purchase of Microsoft. The average price target shows an increase of about 11% from current levels.
Microsoft cloud computing has been a driving force behind progress. According to data compiled by Bloomberg, the company Intelligent Cloud represented 33,8% of Microsoft revenues for 2020, making it the largest of the three main divisions of the company.
Nadella's strategic moves put Microsoft in a position to take advantage of the business trends that emerged during the global pandemic. Lockdown and remote work accelerated the transition to the company's digital meeting software and pushed customers to accelerate the modernization of networks and software applications around the cloud. Software maker Xbox game subscriptions also entice users looking for ways to have fun during the months they were locked up at home.