Microsoft’s market capitalization topped US$500 billion (A$662 billion) for the first time since March 2000 on Friday, after the technology giant’s stock rose following another quarter of results that beat Wall Street’s expectations.
This growth can be attributed to Satya Nadella, who took over the reins of the company in 2014 when its market capitalization was $315 billion. His “cloud first, mobile first” vision became a mantra for a reinvigorated Microsoft. When he took the job in 2014, the company’s stock was trading at around $34 and its market value was roughly$315 billion, according to Thomson Reuters data. But now, the stocks have been boosted to the median price target of US$68.50 from US$68.00. The company’s acquisition of LinkedIn and the Surface line also contributed to the company’s boost.
RBC Capital Markets analysts wrote in a note, “The pieces are falling into place as we are starting to see an important shift in the model, with improving profitability in growth segments,”
Despite the gains, Microsoft still lags Apple Inc’s market capitalization of about $642 billion and Google-parent Alphabet Inc’s market value of a little more than $570 billion.