Microsoft unseats Alphabet as world's third most valuable company
Microsoft now sits behind Apple and Amazon in terms of market cap.
Microsoft this week surged past Google parent company Alphabet to become the world's third most valuable company. At the close of markets on May 29, Microsoft was valued at $753 billion, while Alphabet was valued at $739 billion. Through trading on May 30, Microsoft has maintained that lead.
In terms of market cap, Microsoft now sits behind Apple and Amazon, who hold onto the first and second spots, respectively. Following up Microsoft are Facebook and Tencent.
As CNBC notes, Microsoft has seen a surge of 40 percent in the past 12 months, largely driven by the company's cloud and commercial services growth. That push has seen the company's cloud offerings consistently perform well over the past several quarters, helping to drive Microsoft to $26.8 billion in revenue with its latest earnings report.
Its cloud offerings, particularly in the enterprise sector, have become an increasingly important part of Microsoft's business since CEO Satya Nadella took over. Under Nadella's watch, Microsoft has also become focused on the budding fields of AI, quantum computing, and mixed reality – all of which are seen as some of the next big frontiers in tech. The company recently drove this home with a reorganization of its teams meant to focus on AI, the cloud, and ambient computing.
It's still possible we could see Microsoft and Alphabet exchange positions again. After Google first passed Microsoft in 2012, the companies swapped spots several times. The real competition over the next several years will be to see who among Microsoft, Apple, Amazon and Google will be the first to hit a $1 trillion market cap.
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Dan Thorp-Lancaster is the former Editor-in-Chief of Windows Central. He began working with Windows Central, Android Central, and iMore as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl.
4. Amazon Amazon's Price to earnings is an insane 200. Microsoft's market cap would be 3 trillion with Amazon's crazy P/E, and the lofty valuations for all 4 companies will be cut 40-50% in the next recession which happens like clockwork every 6-12 years.
But Amazon is more about expanding their empire, than reporting profits right now.
Great job Microsoft!