Software giant Microsoft joins Apple, as it cross the $2 trillion threshold to become only the second company to reach that milestone
Microsoft has become only the third company in the world to be valued at $2 trillion (£1.43 trillion), after a share rise on Wednesday pushed it over the two trillion dollar mark.
The first company to ever reach the $2 trillion level was state-backed Saudi Aramco when it listed its shares in December 2019. That said, its market valuation has now slipped back down to $1.88 trillion.
Then in August 2020 Apple became the first American company to cross the $2 trillion threshold, and actually stay there. Apple’s market capitalisation as of Wednesday morning is $2.23 trillion.
Microsoft has now joined the $2 trillion club, during trading on Tuesday. Its stock on Tuesday climbed 1.1 percent to $265.51.
This means that only two US-based firms, who are technology giants, now occupy the $2 trillion zone.
Microsoft had reached a market valuation of $1 trillion two years ago, back in April 2019.
Since then Microsoft’s value has steadily increased, after quarterly sales rose 19 percent to $41.7 billion for the three months ended 31 March.
All of this has been good news for the wallet of CEO Satya Nadella.
In October 2019 for example, it was revealed that Nadella had netted a 65 percent pay rise, after he brought home nearly $43 million.
Nadella’s total compensation then rose 3 percent to $44.32 million during the company’s fiscal year 2020 that ended in June this year.
But it should be remembered that Apple and Microsoft may not be the only members of the exclusive $2 trillion club in the coming years.
Two other big name tech firms, namely Amazon and Google (Alphabet) are not far behind.
Amazon’s market cap hit $1.77 trillion on Tuesday, and Google parent Alphabet’s reached $1.67 trillion.