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Microsoft hits $1 trillion market valuation | Microsoft hits $1 trillion market valuation |
(about 11 hours later) | |
Microsoft has seen its stock market value top $1 trillion (£774bn) after reporting better-than-expected sales and profits. | Microsoft has seen its stock market value top $1 trillion (£774bn) after reporting better-than-expected sales and profits. |
The US software giant passed the mark briefly on Thursday, before its share price fell back. | The US software giant passed the mark briefly on Thursday, before its share price fell back. |
It makes it one of only three US public firms to have hit the $1tn mark, the others being Apple and Amazon. | |
Microsoft's stock has climbed by about a third in the past year, helped by the growth of its cloud business. | Microsoft's stock has climbed by about a third in the past year, helped by the growth of its cloud business. |
On Wednesday, the firm said revenue rose 14% to $30.6bn in the fourth quarter, thanks to more cloud growth and an unexpected boost for its software. | On Wednesday, the firm said revenue rose 14% to $30.6bn in the fourth quarter, thanks to more cloud growth and an unexpected boost for its software. |
Net profit surged 19% to $8.8bn. | Net profit surged 19% to $8.8bn. |
It continues the strong performance seen under boss Satya Nadella, who has spent the past five years trying to lessen the firm's reliance on its once-dominant Windows operating system. | It continues the strong performance seen under boss Satya Nadella, who has spent the past five years trying to lessen the firm's reliance on its once-dominant Windows operating system. |
Apple and Amazon hit the $1tn mark for the first time last August and September respectively, but both fell back towards the end of the year amid a downturn on global markets. | Apple and Amazon hit the $1tn mark for the first time last August and September respectively, but both fell back towards the end of the year amid a downturn on global markets. |
PetroChina was briefly worth about $1.1tn after floating in Shanghai in 2007, although most of its shares were held by the Chinese government. It is now worth about $200bn. | PetroChina was briefly worth about $1.1tn after floating in Shanghai in 2007, although most of its shares were held by the Chinese government. It is now worth about $200bn. |
While the $1tn milestone garners headlines, Microsoft executives have dismissed its importance in the past. | While the $1tn milestone garners headlines, Microsoft executives have dismissed its importance in the past. |
"This is a metric that nobody on the senior leadership team is tracking," Chris Capossela said at an event last year. | "This is a metric that nobody on the senior leadership team is tracking," Chris Capossela said at an event last year. |
"Nobody is sitting around high-fiving when the stock hits some new high." | "Nobody is sitting around high-fiving when the stock hits some new high." |
Analysis: Chris Fox, technology reporter | Analysis: Chris Fox, technology reporter |
Microsoft may be best known for its Windows operating system, but it makes more money from its Azure cloud services and Office software package. | Microsoft may be best known for its Windows operating system, but it makes more money from its Azure cloud services and Office software package. |
While Apple makes more than 50% of its money from the iPhone, and Amazon from its online store, Microsoft's strength has been sticking its fingers in several pies. | While Apple makes more than 50% of its money from the iPhone, and Amazon from its online store, Microsoft's strength has been sticking its fingers in several pies. |
In 2018, Windows brought in about 18% of Microsoft's revenue, while Office accounted for 25%. | In 2018, Windows brought in about 18% of Microsoft's revenue, while Office accounted for 25%. |
Its smaller gaming and Xbox division brought in about 9% while its own-brand hardware such as the Surface tablets accounted for about 5%. | Its smaller gaming and Xbox division brought in about 9% while its own-brand hardware such as the Surface tablets accounted for about 5%. |
The much-ridiculed Bing search engine is also surprisingly profitable: its data powers some of the latest smart speakers including Amazon's Alexa. | The much-ridiculed Bing search engine is also surprisingly profitable: its data powers some of the latest smart speakers including Amazon's Alexa. |
Microsoft's involvement in so many growing markets clearly has investors hopeful for its future. | Microsoft's involvement in so many growing markets clearly has investors hopeful for its future. |