Microsoft overtakes Amazon to become the second-most valuable U.S. company

Microsoft Logo at Ignite
Microsoft Logo at Ignite (Image credit: Windows Central)

Microsoft surpassed Amazon to become the second-most valuable U.S. company at $821 billion. As reported by GeekWire, Redmond's market cap hit that amount versus $803 touted by Amazon, but both companies continue to trail behind Apple, which sits above $1 trillion.

The Windows giant enjoyed a better than expected quarterly result this week, thanks in part due to Xbox, cloud services and Surface hardware. It hasn't been a sudden change with Amazon's shares slowly falling due to factors including less-than-ideal earnings.

Microsoft

Interestingly, Microsoft has leaped past Amazon as a competing party in the cloud race with Azure and analysts believe the company will continue further to surpass the big $1 trillion mark. The companies have been neck and neck over recent months alongside Alphabet, but Microsoft appears to be on an upward trajectory.

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds is Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him over on Twitter at @RichEdmonds.

25 Comments
  • It's only gonna go up with the popularity of video games. Microsoft should see more growth from that in the next few years.
  • Exciting times. As much as fanboys like to insult one another competition is always a good thing.
  • Amazon is a bubble company!
  • Please elaborate on this. I mean cause you know they do a lot more than just sell books. Or did you forget they also provide cloud services?
  • I mean their stocks' volatility and its speculative valuation. They were a trillion dollar company in September. What happened?!
  • How does that make them a bubble company?
  • @netmann. Stocks fluctuate.
  • They have huge revenues. I don't think they're a bubble. Are they overvalued? That's a different question, because that's about future profit. I can't say I know!
  • They are the #1 company in cloud.
  • Micro$oft is #1 in cloud!!
  • People woke up
  • Amazon is a cut throat company. It is still losing money because it under sells products but it stock is/was going up because of potential profits. You know after they kill off all competition. The scum came out with a $15 minimum but cut bonuses, which cut the best slaves pay check over all. You just like Amazon because you can get cheap stuff and don't worry about tomorrow when thousands of workers will be without jobs because Amazon can sell at a loss and take it off on their taxes. Let's all embrace over consumption and selfishness as a way forward for the human race until that is our resources run out and our grandchildren die of starvation or worse, debt.
  • Pretty awesome considering how so many people tried to write them off because they revamped this vision and more or less killed their Mobile OS. They are where they should be.
  • Stocks don't tell the entire story. It doesn't tell the story of the amount talent lost during the constant re-orgs, the loss of coding hours, the hamstringing of innovation for example the latest Surface Pro 6 did not have USB Type-C primarily because they would have had to re-worked the entire internals as well as re-machine a new chassis. Which is expensive so Microsoft's current profit grabbing policies (tendencies) meant the hardware division was pretty much prevented from innovating. Furthermore the entire debacle of the October 2018 update could have been avoided if they had the dedicated programmatic testers and the Quality assurance team. Developers are not testers to not feasible to expect them to design, implement, test and reiterate. There are not enough coding hours available. Combined with the constant re-orgs, it becomes nigh on impossible to ensure quality (as productivity and morale plummets). We have seen examples of this time and time again ever since the massive round of lay offs. Cost saving is all good and well, however there is a fine line - once crossed departments become hamstrung and the company bursts because it can no longer grow. So the only momentum is implosion inwardly as it becomes unable to maintain the previous quality level. Microsoft has passed the infection point, they can no longer reduce cost - they must invest if they are to grow and remain relevant. A company is not a cricket team.
  • "Microsoft has leaped past Amazon as a competing party"
    Looking at the chart, I'd say, Amazon fell below decreasing Microsoft rather than Microsoft climbing the ladder. 😄
  • Everything is where it should be.
  • Nice job Microsoft
  • Yeah, this doesn't look like Microsoft surpassed Amazon, more that Amazon's value dropped significantly in the past month. In fact, every company took a slight dip in October. Although Microsoft definitely saw the least amount of movement down which is a good thing.
  • Exactly. Come on Nadella. You are the messiah. Do something. I am sure you cannot.
  • Too bad Windows development has beeb half assed. Microsoft put some money and more effort into Window 10 please.
  • Actually, while that may seem like the right and honorable thing to do, in the long run it’s preferable that they do the absolute minimum possible on Windows. They’ve got that market locked already. No CIO will ever risk his/her career switching to another OS in the workplace. Satyas smart and knows that. That’s why he’s moved his knights, bishops and pawns into Azure, O365, and the Android and iOS apps that support them.
  • Amazon is literally masking Microsoft since April'18. Progress of Amazon Web Services from Jan'18 to Oct'18 is really impressive. From being the last among the big 4, it has managed to dethrone the likes of Microsoft & Google. I would have praised Microsoft if they had dethroned Apple. But they stayed at 3. Amazon is anyways a dark horse in this race and a clear winner in this case! I am sure that you will report when Amazon takes the lead once again. And even if you don't, I will!
  • Looks like an orange baboon's trade war is hitting all of the big four tech companies, but Amazon the most.
  • It's not so much that Microsoft gained value but rather Amazon lost value. I guess it's all just semantics but if four people are climbing ladders and I am stopped at the 20th rung and my buddy who had been on the 25 rung decides to climb down to the 18th rung I wouldn't say "ha ha I overtook you" even though I am now in front.
  • Amazon Web Services (AWS) has been the top dog in cloud services for years. MSFT Azure cloud services has recently been moved up to second within the past four years. This was mode possible by Sataya's shift in focus and in doing so has allowed for MSFT to expound its digital footprint on enterprise and consumers. What makes Office 365 such a superior philosophy is it's cloud reach. This is how one can be immersed in the MSFT ecosystem despite the phone they're using having branding of Samsung and running Android.