After-hours trading on Wednesday gave tech giant Microsoft its 30 minutes of fame. Microsoft’s stock surged to over $130 per share, raising its market capitalization past $1 trillion. The valuation fell just below the landmark point about half an hour later.
The boost makes the software giant third to attain exclusive membership of the $1 trillion market capitalization club, following Apple Inc. in August and Amazon.com Corp. in September. All three companies have held the title of the world’s most valuable U.S.-listed company at one point in the last few months.
Microsoft declared revenues of $30.6 billion for the third quarter, up by 14% year-on-year. Net income rose by 19% to $8.8 billion, owing to strong performance from the firm’s Windows, gaming, search advertising and Surface businesses. The corporation returned $7.4 billion to shareholders through share repurchases and dividends in FY19 Q3.
“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, Microsoft’s chief financial officer. For the past five years, there has been a shift in reliance from the Windows operating system to cloud-based services. Their flagship cloud product, Azure, competes with Amazon Web Services (AWS) to be the biggest cloud service provider. Microsoft and AWS are currently in the final stages of competing for JEDI, a $10 billion Department of Defense contract.
Other profitable segments for Microsoft were Productivity and Business Processes with revenues of $10.2 billion, which rose by 14% while commercial sales of Office 365 saw revenue growth of 30%. LinkedIn, the professional network it acquired a few years ago, saw revenues jump 27%.
Despite hitting the trillion-dollar market capitalization mark, Microsoft team are not tracking this metric closely, according to its Chief Marketing Officer Chris Capossela.
Microsoft will open trading as a trillion-dollar company today, if its after-hours stock price holds above $130.