After reporting a strong earnings report last week, Microsoft has now hit ever new heights in the money front. The company reached a value of $1 trillion for a period of time last week.
This was as a result of Microsofts strong earnings report which sent the company’s share prices upwards, which in turn lead to the company's total market valuation going above $1 trillion for the first time in their history. However, it was a short lived fan-fare as share prices dropped later, decreasing them to a measly $995 billion in valuation. What's $5 billion dollars difference in the grand scheme of things though? In the tech market, Apple and Amazon are the only other companies to have hit that coveted $1 trillion valuation but even their prices have dipped due to the ever changing volatility of the stock market. Now we’re all just looking to Google to make it into the club as Google (Or their parent company, Alphabet) are the only remaining member of the so-called “Big Four” who are waiting to hit that $1 trillion valuation.
What made Microsoft's share price to climb up to that valuation was more than likely the strong third-quarter earnings results announced last week. The results show that Microsoft's revenue made a jump of 14% to $30.6 billion, with income rising 19% to $8.8 billion. For those who have not been watching carefully, that's nearly $9 billion of pure profit within the last three months alone. Crazy.
As we reported last week, Microsoft’s earning report also let us know what was happening with the Xbox, with Xbox One sales down but total gaming revenue enjoying a healthy growth of 5%.
