Microsoft Corp has again become the second most valuable company in the United States. This feat was however not accomplished by Microsoft itself through its value enhancement but because of the poor performance of Amazon.com – the company it replaced to regain the second spot. Almost $65 billion was wiped out of the market valuation of Amazon after a fall of its shares following the company announcing disappointing third quarter results which fell short of market expectations as well as its own target for sale revenues.
The US company that is still the most valuable company in the country is Apple Inc which is valued at more than $1 trillion – threshold that it crossed over this September. The market capitalization for Microsoft was the highest at Wall Street during the late 1998 and through the early 2000s till such time that the so called dot com bubble burst.
After Amazon, the largest e-retailer in the world, reported poor performance for the holiday season sale, there was drop of 7 per cent in the shares of the company. This single day drop was the highest for the company in almost three years. The poor performance of the company has also stoked concerns about tough competition being finally faced by the Wall Street's tech darlings stocks.
Amazon’s disappointing results – coupled with Google parent Alphabet’s poor performance resulted in a selloff in the broader tech stocks which impacted Microsoft shares with a drop of fell 1.1 per cent. These events resulted in the drop of 1.9 per cent in the Nasdaq composite index on late Friday afternoon.
Despite the modest fall, Microsoft stocks remained almost 4 per cent above the Wednesday price when the four-decade-old software company exceeded Wall Street expectations for the third quarter. Its performance was driven by better performance in its cloud computing business which one of the closest competitors of Amazon in this segment.
Microsoft’s market capitalization as on Friday was at $823 billion and is steadily moving ahead to close the week above Amazon's for the first time since April this year. It was then that Amazon overtook Microsoft as the second most vaklued company in the US in terms of market capitalization.
As on Friday, the market capitalization of Amazon was $805 billion after its sticks fell below Microsoft's in extended trade on Thursday. Only the drop in the value of Amazon was the same as the combined market value of Target Corp and Corning Inc.
After the drop in its shares, Amazon’s stock remained up by around 40 percent year to date. There has been a 25 per cent gain in stocks of Microsoft so far in 2018. On Wednesday, Amazon's stock traded at the equivalent of 70 times expected earnings, its lowest level since 2011.
(Source:www.nytimes.com)
The US company that is still the most valuable company in the country is Apple Inc which is valued at more than $1 trillion – threshold that it crossed over this September. The market capitalization for Microsoft was the highest at Wall Street during the late 1998 and through the early 2000s till such time that the so called dot com bubble burst.
After Amazon, the largest e-retailer in the world, reported poor performance for the holiday season sale, there was drop of 7 per cent in the shares of the company. This single day drop was the highest for the company in almost three years. The poor performance of the company has also stoked concerns about tough competition being finally faced by the Wall Street's tech darlings stocks.
Amazon’s disappointing results – coupled with Google parent Alphabet’s poor performance resulted in a selloff in the broader tech stocks which impacted Microsoft shares with a drop of fell 1.1 per cent. These events resulted in the drop of 1.9 per cent in the Nasdaq composite index on late Friday afternoon.
Despite the modest fall, Microsoft stocks remained almost 4 per cent above the Wednesday price when the four-decade-old software company exceeded Wall Street expectations for the third quarter. Its performance was driven by better performance in its cloud computing business which one of the closest competitors of Amazon in this segment.
Microsoft’s market capitalization as on Friday was at $823 billion and is steadily moving ahead to close the week above Amazon's for the first time since April this year. It was then that Amazon overtook Microsoft as the second most vaklued company in the US in terms of market capitalization.
As on Friday, the market capitalization of Amazon was $805 billion after its sticks fell below Microsoft's in extended trade on Thursday. Only the drop in the value of Amazon was the same as the combined market value of Target Corp and Corning Inc.
After the drop in its shares, Amazon’s stock remained up by around 40 percent year to date. There has been a 25 per cent gain in stocks of Microsoft so far in 2018. On Wednesday, Amazon's stock traded at the equivalent of 70 times expected earnings, its lowest level since 2011.
(Source:www.nytimes.com)
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