Microsoft became the 3rd company to breach the $1 trillion mark
Software giant Microsoft (MSFT) briefly became the third company to reach the $1 trillion club. The company’s stock peaked at $130.5 a share on Friday, April 26, which gave it a market cap of $1 trillion. The stock closed the session at $129.89, which means the company ended the day with a market cap of $996.5 billion.
The stock has risen by over 11% in the last one month. It rose 3.3% on Thursday, April 25, after it announced a stellar earnings report. The company’s shift of focus to its cloud business seems to be paying off. The tech giant said that its cloud infrastructure arm, Azure, posted growth of 73% year-over-year during the March quarter.
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Microsoft has been the most valuable public company in the world by market cap for most of this year, as Apple stock tanked late last year due to worries about shrinking iPhone shipments.
Microsoft appears slightly expensive
Apple and Amazon (AMZN) have also seen their stocks surge this year. All three companies currently have a market cap of over $950 billion. Microsoft’s stock has jumped 29.4% this year, while Apple and Amazon have climbed 30.8% and 29.9%, respectively, since the start of the year. These stocks along with other tech giants have driven the Nasdaq Composite Index to another all-time high.
However, Microsoft’s stock currently looks relatively expensive. The stock is trading at 24.1x its calendar year 2020 earnings.