American technology major Microsoft became the world’s most valued company, briefly touching a market valuation of $1 trillion, a day after the tech giant reported its quarterly earnings beating analyst expectations.
With this, the company has now joined the likes of Apple and Amazon, which have both touched the market valuation of $1 trillion.
Shares of the company opened as much as $131, before paring gains to trade at $129.96 on Thursday morning, taking the company’s valuation to $996.66 billion. Apple, the first company to hit a market valuation of $1 trillion, is currently valued at around $971.31 billion, while Amazon is at $942.06 billion.
On Wednesday, Microsoft recorded a robust financial performance for its third quarter ending March 31, which beat market expectation. Its revenue touched $30.6 billion at an annual growth of 14 percent while net profit increased by 19 percent to reach $8.8 billion for the third quarter.
In a press statement, Microsoft CEO Satya Nadella said,
“Leading organisations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge, so our customers can build the digital capability increasingly required to compete and grow.”
Further, Amy Hood, executive Vice President and Chief Financial Officer of Microsoft, said,
“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up by 41 percent year-over-year. We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners, and targeted strategic investments.”
It also returned $7.4 billion to shareholders in the form of share repurchases and dividends this quarter.
Additionally, Microsoft-owned LinkedIn reported a revenue increase of 27 percent (up by 29 percent in constant currency) with record levels of engagement highlighting sessions growing by of 24 percent.