It seems that even though it provided free upgrades to Windows 10. Microsoft is still earning a lot from other sources. The new consoles, the sale of commercial licenses, and the impending announcement of Windows 11 have pushed Microsoft to a market value that exceeds the $2 Trillion mark. Making it the second publically traded American company to do so.
Microsoft has officially made its way into the elite $2 trillion corporation club being only behind Apple to reach this valuation. Other companies that reached the $2 trillion mark include Oil Company Saudi Aramco, which went public back in 2019. The current market cap of the oil company is below that mark now but the fact it reached that peak is an achievement nonetheless.
The case is similar to Microsoft as well. Its market capitalization topped $2 trillion during trading yesterday. However, it closed on a value of just $300 million less. The stock prices of the company rose by 1.1% on Tuesday to a value of $265.51. It took Microsoft only two years to reach this mark after it had reached the $1 trillion market cap mark.
You could argue the COVID 19 and the pandemic helped the company somewhat. The pandemic meant people were spending more time at home. Companies had to spend money to buy licenses for Microsoft Teams in order to facilitate work from home for their employees. Zoom saw increased profits for the same reason. Spending time at home also encouraged people to spend time on their PCs, buy gaming consoles, and even consider cloud computing options.
In just April alone, Microsoft reported that sales had increased up to 19% to $41.7 billion for the past three months. CEO Satya Nadella said in a statement in April that “Over a year into the pandemic, digital adoption curves aren’t slowing down. We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform”.
Microsoft is even set to announce big news about its Windows operating system in an event on June 24th at 11 am ET/ 8 am PT. Many think that they are going to announce the next version of Windows called Windows 11 but we are sure that Windows 10 is getting a massive visual refresh called Sun Valley. Leaked screenshots show a revamped design and a start menu that look akin to an app drawer.
It’s a no-brainer that Microsoft’s market cap could go up even more after the announcement but $3 trillion still seems years away.