12 Jun

How Microsoft Trumped Apple and Amazon in the $1 Trillion Race

WRITTEN BY Mohit Oberoi, CFA

Microsoft’s market cap

Microsoft’s (MSFT) market cap crossed $1 trillion this month amid the recovery in the broader equity markets. The stock is up 6.8% this month and 31.1% YTD (year-to-date).

While the race for a $1 trillion market cap also has Apple and Amazon (AMZN) as contenders, Microsoft has been the winner so far this year.

How Microsoft Trumped Apple and Amazon in the $1 Trillion Race

Apple

Apple’s market cap was below $900 billion based on yesterday’s closing price. The stock is up 11.2% this month, which has taken its YTD gain to 24.5%. Apple is the largest holding in Berkshire Hathaway’s portfolio. However, after steadily adding Apple shares since first taking a stake in 2016, Berkshire Hathaway hasn’t added any Apple shares in the last two quarters. On the contrary, it sold some Apple shares in the fourth quarter.

Apple saw a selling spree in the fourth quarter, losing more than 30% of its market cap. The stock came under pressure last month amid the escalation in the US-China trade war. Apple underperformed the FAANG pack last month but has recouped most of its losses in June.

Amazon

Amazon’s market cap was $918 billion based on yesterday’s closing price. Amazon has gained almost 5% this month and is up 24% for the year. Berkshire Hathaway added Amazon to its portfolio in the fourth quarter. Berkshire chair Warren Buffett made the announcement last month before its annual meeting.

While the top spot in terms of market cap has seen Microsoft, Apple, and Amazon in a tight race over the last year, Microsoft could continue to hold the title even as the other companies struggle to reclaim their 2018 highs.

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