At the beginning of this century, Microsoft was flourishing thanks to all the hype of the dotcom-era. March of 2000 is when Microsoft had the highest market valuation it has ever had – a little over $550 billion.
Windows ME wasn’t out yet, and Windows 95’s extreme success had allowed for optimism to grow. Windows ME, of course, was a failure, which was quickly followed by Windows XP in 2001. The adventure made a big dent in Microsoft’s valuation; it never crossed $500 billion again.
Today, seventeen years later, Microsoft’s market cap has gone past the $500 billion mark, for the first time since 2000. It’s still not as high as it once was (not accounting for inflation), but its growth is something to behold.
This news comes right after Microsoft beat the Wall Street expectations and reported a better-than-anticipated Q2FY17; with $24.1 billion in revenue, a lot is going for Microsoft.
Microsoft’s shares rose by 2.1% to an all-time high of $65.64 in early trading, valuing the company at $510.37 billion.
The credit for this goes to Microsoft’s continued investment in its cloud business; whether it be Azure for the enterprise or Xbox Live services for the gamers. Microsoft isn’t making a lot of money when it comes to the hardware – Surface or the Xbox One console – but selling services on this hardware is where the money is flowing.
Still a way to go
A $510 billion valuation is a lot, but that figure only puts Microsoft at the third spot on the list of most valuable technology companies.
Alphabet – Google’s parent company – with its mighty moon shoots, falling advertisements, and a secure cloud business, sits at a market valuation of little over $570 billion.
Microsoft’s arch nemesis, Apple, on the other hand, is world’s most-valued technology company, with a market valuation of $642 billion.
Microsoft clearly has a long road ahead; a few analysts have previously predicted that Microsoft would become the world’s first $1 trillion company. That’s not for us to debate, but we sure hope for it to be true (compensate for bias).