Microsoft becomes 2nd US company to join $2 trillion club
- Microsoft's shares rose by 1.2% on Tuesday
- It's the 2nd company after Apple to reach $2 trillion value
- The software giant gained around 19% this year
Tech giant Microsoft corporation created history by becoming the second US-based public company to reach $2 trillion market value. It has joined Apple Inc. in the double trillion club after its shares rose by 1.2% on Tuesday, Bloomberg reported.
The company, under the leadership of Indian engineer Satya Nadella, has established its dominance in cloud computing and enterprise software and is expected to expand further in the post-COVID period.
For now, Apple and Microsoft are the only two corporations trading at this value. Before this, Saudi-based oil company Saudi Aramco breached the $2 trillion threshold for a brief period. The company is presently trading at $1.9 trillion.
As far as Microsoft's market performance goes, the software giant gained around 19% in the pandemic-ridden year. It has outperformed Apple and Amazon- two of its biggest market competitors. The rise is likely to be the outcome of investors surging interest in MS's stocks expecting long-term growth in both earnings, revenue, and obviously, expansions in areas like cloud computing.
Microsoft, founded in 1975 by American engineers Bill Gates and Paul Allen, recently named its chief operating officer (CEO) Satya Nadella as the company’s chairman, an additional role in which he will "lead the work to set the agenda for the board." Nadella succeeded John W Thompson who will now serve as the lead independent director.
The company has dominated the software industry for years.