Microsoft has regained its spot as the second most valuable US company, after forcing Amazon down into the third, according to new figures.
Reuters is reporting that Amazon essentially pushed itself down, having a ‘disappointing quarterly report’ which wiped $65 billion from the company’s market capitalisation.
The Redmond giant’s shares fell 1.1 per cent, but Reuters says this was due to a ‘broad technology sell-off’ triggered by an unexpectedly poor report from Alphabet.
Despite the slight fall, Microsoft’s shares are still up almost four per cent from Wednesday, with a stock market valuation of $823 billion. Analysts value the company at $963 billion.
Apple is still the undisputed champion on the list, with a valuation of more than a trillion dollars. It crossed that threshold this September. Amazon’s shares fell almost seven per cent, which is the hardest they had fallen in the last three years. Reuters believes this is a signal that Amazon is ‘finally starting to face stronger competition’.
“Amazon’s tumble left it up around 40 per cent year to date, while Microsoft has gained about 25 per cent in 2018,” it says. “On Wednesday, Amazon’s stock traded at the equivalent of 70 times expected earnings, its lowest level since 2011.”
Since CEO Satya Nadella took over in 2014, Microsoft has shifted focus into cloud computing and data centres, with much success. Its Azure business, together with Office 365, are raking in serious profit for the company.
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