Microsoft’s market value quietly surpassed Google’s parent company’s Alphabet on Monday and became the world’s second largest market capitalization company after Apple.
Microsoft's share price rose 1.09 US dollars, or 1.17%, to close at 94.17 US dollars in the regular trading on the Nasdaq stock market. According to the closing price, Microsoft's market value has reached US$725.1 billion, making it the second largest market-value company in the world, second only to Apple’s 892.1 billion US dollars. Based on Monday's closing price of $1037.98, Alphabet's market capitalization was approximately $723.7 billion, a difference of approximately $1.4 billion from Microsoft's market value. Amazon is currently the world’s fourth-largest market capitalization company with a market value of approximately US$6978 billion at the closing price on Monday.
Regarding which company's market capitalization can lead the breakthrough of 1 trillion US dollars, investors mainly focus on Amazon and Apple. Amazon’s market value had Google’s parent company, Alphabet, in late March of this year and became the world’s second largest market capitalization company after Apple. Prior to this, a US technology unit that involved the leakage of personal information data from more than 86 million Facebook users had collectively collapsed. But after that, investors began to treat technology companies differently--that is, to separate companies that are vulnerable to Facebook selling pressure from other technology companies. It is in this context that Amazon's market value exceeds the Alphabet and becomes the world's second largest market capitalization company.
But shortly afterwards, Axios, the US cutting-edge news site, reported on March 28th that Trump "obsessed with Amazon" and considered counterfeiting, supervision, and potential tax adjustments to deal with this giant appliance company giant. . Wall Street is worried about the Trump and Amazon war will become a reality, leading to Amazon's stock price fell more than 4% on the same day. Subsequently, Trump said in a tweet posted on March 29 that: "Before the election, I have already stated my concern for Amazon. What differs from other companies is that they only pay a small amount of taxes to the states and local governments, or even do not pay taxes at all, and also use our postal system as their ‘deliverer’ (which gives the United States Brought a huge loss, and led to the bankruptcy of thousands of retailers! ”
Since then, Trump has launched a tweet to bombard the Amazon four times, saying that the company has caused the United States Postal Service to suffer heavy losses, and criticized the "Washington Post" for making false news. Affected by this, Amazon's share price plummeted and it bottomed out at $1566.57 on March 27 to $1,361.28. The company's stock price closed at 1441.50 on Monday, still more than 8% lower than Axios' exposure before Trump considered sanctions on Amazon.
Compared to Amazon, Microsoft's stock price has not experienced major fluctuations in the past month. Investment bank Morgan Stanley analyst Keith Weiss said in a research report released in late March: "The favorable position in the public cloud service market, a wide range of distribution channels, and a large user base," And the improving profit rate will push Microsoft's market value to exceed one trillion US dollars. "The analyst believes that Microsoft's ability to outperform Amazon and Google in this area will also benefit from its analytical technologies, machine learning and office applications."
Morgan Stanley raised Microsoft's target price for the next 12 months from $110 to $130. According to the price of 130 US dollars, Microsoft's market value will exceed 10,000 US dollars. At the time of this report, Microsoft’s market value was US$671 billion, lagging behind Apple’s US$856 billion, Amazon’s US$744 billion and Alphabet’s US$730 billion.
At the end of last month, Microsoft announced a major restructuring decision, re-establishing two new departments, focusing on experience and equipment, as well as cloud computing and artificial intelligence platforms. Terry Myerson, executive vice president of Microsoft's Windows business, will leave the company. Rajesh Jha, currently the executive vice president of products, will be responsible for the experience and equipment department, and Scott Guthrie, currently executive vice president of Cloud Computing and Enterprise Group, will be responsible for the cloud. Computing and Artificial Intelligence Department. This major restructuring of Microsoft will focus on building cloud-based services instead of the traditional Windows.
Microsoft's reorganization focuses on cloud services and no longer focuses on the Windows business. This reform also means that the "Gates" style will no longer exist in the new Microsoft company.