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Microsoft's Market Value Soars to $ 2 Trillion

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Microsoft, a leading developer of computer software and applications, made history by scoring a market value of $ 2 trillion with bets boosting its supremacy in cloud computing and enterprise software that may further expand no matter the COVID-19's reign. This ranked the giant computer software and applications developer as the second US public company and its shares reached at 1.2 percent in New York.

Seeming as how far its share value has reached, the company is eligible to join Apple Inc., as one of just two companies trading at such a high price before closing at $265.51, just pennies short of the mark. Saudi Aramco briefly surpassed that record in December 2019, but now has a market capitalization of around $1.9 trillion.

The company's third-quarter results, which were revealed in late April, exceeded expectations, and showed excellent growth in all of its business sectors.

According to Hilary Frisch, senior research analyst, Clearbridge Investments, “Microsoft has its hands in a lot and does it all well: gaming, cloud, automation, analytics, AI. With the economy reopening and a more marked tilt toward the cloud, it is an attractively valued brand inside IT”.

Additionally, Satya Nadella’s arrival as its CEO in 2014, his strategic decisions has benefitted Microsoft from business trends that evolved during the pandemic. Lockdowns and remote work hastened the transition to the company's meeting software, and clients have been driven to accelerate software network and application modernizations in the cloud. Xbox gaming subscriptions enticed people looking for something to do while confined at home during the winter months.

Jason Ader, analyst, William Blair stated that “at a high level, the two core pillars of Microsoft's bull narrative which are Microsoft 365 and Azure, are well understood by the financial community. What is maybe less acknowledged is how Microsoft has grown its IT wallet share over the previous 15 years by extending into new product sectors and gaining market share. From 2006 to 2020, the wallet share doubled, and we expect it can double again over the following decades.

Microsoft has gained 19 percent this year, outpacing Apple and Amazon.com Inc., as investors rushed into the company on the promise of long-term earnings and revenue growth, as well as expansion in areas such as machine intelligence and cloud computing. The company's third-quarter results, which were revealed in late April, exceeded expectations, and showed excellent growth in all of its business sectors.

Microsoft, which was co-founded by Bill Gates and Paul Allen in 1975, gave birth to the personal computer software industry and controlled the market for PC operating systems and Office software for many years.

It has pushed new ideas for organizing meetings where some attendees are in person and some remote, along with measures to promote wellness and productivity for employees who, according to the business, have been worn out by the year's trials.

In May, Jason Ader, analyst, William Blair stated that “at a high level, the two core pillars of Microsoft's bull narrative which are Microsoft 365 and Azure, are well understood by the financial community. What is maybe less acknowledged is how Microsoft has grown its IT wallet share over the previous 15 years by extending into new product sectors and gaining market share. From 2006 to 2020, the wallet share doubled, and we expect it can double again over the following decades.

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