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Microsoft becomes the third company in history to hit $1 trillion valuation

Microsoft becomes the third company in history to hit $1 trillion valuation

Microsoft becomes the third company in history to hit $1 trillion valuation

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Under the strong leadership of CEO Satya Nadella, American tech giant Microsoft has hit a $1 trillion market valuation becoming the third public company to hit the mark after Amazon and Apple.

The new boss Mr Nadella has spent the last five years trying to build a different future for the company. A future where Microsoft will no longer depend solely on the Windows Operating system for its income.

 

All that efforts seems to be finally paying off as the firm’s revenue rose by 14% to $30 billion on Wednesday. It’s cloud storage services (Azure) and unexpected growth in its software led to this growth boosting the company’s net profit to $8.8billion.

 

Apple first hit the $1 trillion mark last year August, followed by Amazon in September. But both companies value have since dropped due to the global market downturn.

 

However, Microsoft has dismissed the achievement as not being too significant. High ranking Microsoft executive once said at an event last year that “nobody is sitting around high-fiving when the stock hits some new high.”

Microsoft becomes the third company in history to hit $1 trillion valuation

 

Microsoft may be most remembered by it’s Windows OS but thanks to the new CEO. The company now makes more money from other services such as it’s Azure cloud storage and Office Software package.

 

According to reports, Windows brought in only 18% of Microsoft’s revenue in 2018 while Office brought in 25%. XBOX brought in only 9% while it’s new Surface tablets and hardware brought in just 5%.

 

Many internet users around the world laugh at the Bing search engine. But hate it or not, the search engine is profitable to Microsoft. What a lot of people don’t know is that the data from Bing powers Amazon Alexa and other smart home devices.

 

While Apple depends more on the iPhone for its revenue, Microsoft is diversifying its economy. Raking in profits from different products all at once. Notwithstanding, Windows reign on the $1 trillion valuations was only short lived. The shares have already fallen back since Wednesday.

 

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