On Thursday, Microsoft became the third US Company to join an exclusive club whose only membership requirement is to have a market valuation of $1 trillion or more, and in the process it’s captured the crown for most-valuable company.
The software giant broke the limit late on Wednesday in after-hours trading when shares spiked over 4% on better-than-estimated earnings and revenue. For the third quarter, Microsoft posted its revenues of $30.6 billion and net income of $8.8 billion on strong performance from the company’s Windows, Xbox/gaming, search advertising and Surface businesses. It shortly topped $130.50 that pushed the market cap over the psychological brink. Overall, Microsoft’s stock is up by 34% in the last year.
The expansion makes Microsoft the third US company to hit that market-cap mark, as well as the most valuable US Company, based on the trading price of all of a company’s shares added together. Apple became the first company to hit the mark of $1 trillion valuation in August. Amazon also joined Apple a month later but now has a value of $935 billion.
Microsoft beat Google’s parent company Alphabet to the punch with today’s achievement, but it’s probably for a short span of time before the search engine giant joins the club.