Microsoft joins Apple in the $ 2 trillion club, in short | Business and Financial Issues

Microsoft Corp. took its place in the history books as the second-largest US company to reach a market value of $ 2 trillion, fueled by its online betting and corporate software is growing rapidly in the coronavirus.

Its shares rose 1.2% in New York on Tuesday, enough for the software company to include Apple Inc. as one of only two companies selling at the highest price before closing the shortfall at $ 265.51. Saudi Aramco briefly vacated the site in December 2019, but now has a market value of about $ 1.9 trillion.

Since taking over the reins in 2014, Chief Executive Officer Satya Nadella has transformed the Redmond, Washington-based company into a major computer software vendor, accounting firm and Office of Cloud. Microsoft is the only major US-based company that has changed its focus on the latest anti-American antitrust, giving them more freedom to buy and grow products.

Microsoft has gained 19% so far this year, more than Apple and Amazon.com Inc., as retailers sell in the market and expect long-term growth in pay and revenue, and grow in position as a learning platform and cloud computing. The company’s third quarter results, released at the end of April, met expectations and showed strong growth in its business segments.

The heavyweight Nasdaq 100 Index surpassed the S&P 500 Index on Tuesday after Federal Reserve Chairman Jerome Powell reiterated that the respite could not be temporary. Both indicators grew after Powell and Nasdaq 100 reviews closed 0.9% and S&P 500 to 0.5%.

Microsoft “has a lot of hands and is doing well: games, cloud, machine, analytics, AI,” said Hilary Frisch, senior researcher at Clearbridge Investments. “It’s a very important technical name, and it should benefit from the reopening of the economy and the transformation of the cloud.”

Co-co-founded in 1975 by Bill Gates and Paul Allen, Microsoft developed computer software and managed the market for PC and Office software for many years. As web browsers such as Netscape gained momentum in the 1990s, Microsoft rushed to develop what it developed for the Windows software. This led to a court case filed in 1998 by the US government, a federal judge finding the company guilty in 2000.

Although Microsoft has avoided the end of its business, the government’s crackdown on law enforcement agencies over the past decade has seen the developer miss out on the advent of computer software, social networking and online search, leaving rivals such as Google and a nimbler like Apple. With a number of changes, over the past seven years Nadella has restored Microsoft to the tech-savvy vanguard of the cloud, mobile phones and creative design.

Microsoft, founded by Bill Gates and the late Paul Allen, took 33 years from the IPO to reach the $ 1 trillion market. [File: Barry Sweet/ Bloomberg]

Although it took Microsoft 33 years from its IPO to reach $ 1 trillion in 2019, the next trillion only took nearly two years between the popularity of stocks before the Covid-19 epidemic and during the health crisis. Apple made Wall Street record when it reached $ 2 trillion last year.

Of US names, the two are followed by Amazon, which has a market capitalization of about $ 1.8 trillion, and Alphabet Inc., which is about $ 1.6 trillion.

“Microsoft looks at all the boxes: it’s in the markets where traders enjoy it, it offers solid and stable growth, and it remains ideal to leverage the latest technological developments,” said Logan Purk, researcher at Edward Jones. An estimated $ 2 trillion “is worth it, depending on how it is affected by the cloud, and it remains valuable even though it works hard.”

According to Bloomberg, more than 90% of analysts recommend buying Microsoft, while no one has the same price on the market. The average price points up to 11% from here.

Growth Operators

Microsoft’s cloud computing business has been a major contributor to this before. According to Bloomberg, the Intelligent Cloud business accounted for 33.8% of Microsoft’s revenue in 2020, making it the largest share in the first three quarters for the first time, as well as 31% in 2019. The share showed a growth of 24 per cent revenue. % last year, compared to 13% growth in Product and Business Processes, as well as a 6% growth rate for the Microsoft Personal Personal Computing segment.

Nadella’s actions have enabled Microsoft to benefit from what is happening during the global epidemic. Closing and remote operation encouraged the transformation of corporate software and forced customers to accelerate the transformation of cloud-based applications and applications. The creators of the Xbox apps in his game also lured users into looking for distractions in the home months.

After employees returned to office, Microsoft has tried to force new ideas for meeting management, some of which are face-to-face and remote, and have been selling products to promote the health and productivity of employees that the company says have been plagued by problems over the past year.

“On top of that, Microsoft’s two major bull pillars – Microsoft 365 and Azure – are well-received by the sales team,” William Blair’s specialist writer Jason Ader wrote in May. “What is probably not appreciated is that over the past 15 years Microsoft has expanded its IT portfolio through growth in innovation” and is participating in the market. The share of the fund doubled from 2006 to 2020, and “we hope it will double again in the next ten years,” he wrote.

Wall Street is the best in the M&A industry. It has recently announced that it is buying a well-known pioneer of the voice of Nuance Communications Inc. The company also tried to acquire Discord Inc. of $ 12 billion, but the media company rejected the offer.