Microsoft’s market capitalization briefly hit $1 trillion late Wednesday, thanks to the firm’s better-than-expected quarterly results. This marks the third time a U.S. tech giant has hit the financial milestone in the past year.
Microsoft’s net income and revenues for the quarter ending March 31 both beat expectations. As you may recall, Microsoft earned a net income of $8.8 billion on revenues of $30.6 billion. Those results sent Microsoft’s stock soaring, at least temporarily, past $130.50 per share. And that, in turn, increased the firm’s market cap to over $1 trillion.
Microsoft isn’t the first U.S. tech firm to hit a $1 trillion market cap, of course.
Apple was first to this milestone in August 2018 when it briefly became the first-ever publicly traded U.S company to be worth $1 trillion. Interestingly, that record was tied to ongoing, at the time, record iPhone sales. Since then, of course, Apple’s iPhone business has begun declining at an alarming rate, leading the consumer electronics giant to focus more on services this year.
Two months later, e-retailer Amazon.com hit the $1 trillion valuation mark.
And now we have Microsoft. Or, we did: The software giant’s market cap has dropped to about $960 billion at the time of this writing as excitement around what was really just a fairly normal quarter for the company finally died down.