Amazon Falls Behind Microsoft at Market Cap Trillion Race

In the world of business, it could be extremely competitive most of the time. Especially in the world of tech wherein businesses strive to be at the top. Some of the biggest companies that are dominating the business industry today are Amazon, Apple Inc, Microsoft, and more. Last year, one of these major companies managed to snag the crown and become the very first United States listed company to reach $1 trillion in market capitalization.

Their shares hit $207.39 last August, which led to them officially hitting the trillion mark that no one has actually done before. Then again, Amazon and Microsoft weren’t even far behind and were expected to hit their trillion mark anytime this year as well. That exactly happened but not in the order that the experts actually expected it.

For the very first time in history, Apple Inc. became the very first company to ever reach the trillion mark

The Trillion Race

After Apple hitting the trillion cap last year, it was expected that another massive company is not that far behind, and that company was Amazon. However, it would seem that instead of being the second, their numbers continue to fall that may lead them to be heated by an unlikely opponent, which is Microsoft. Amazon was just so close to hitting the trillion market cap last month, but Amazon lost $200 billion off its valuation just last week. This then led to them falling behind Microsoft who hit $821 billion last week which is $20 billion more than Amazon.

However, both companies vowed to their investors that the incoming fourth quarter will be better. Microsoft stocks are already rising with 2.7 percent on the trade, which exceeded the expectations of the Wall Street analysts on their 34 percent and $8.8 billion jump.

The reason for this is said to be because of the public cloud adoption since it grew 76 percent. According to Microsoft’s chief financial officer, Amy Hood, the third quarter massive jump was all because of the company’s cloud products as well as their long term bets. Their Intelligent Cloud segment alone reached $8.6 billion which is a massive difference from the previous year.)

According to Microsoft’s chief executive officer Satya Nadella, the company has been focusing a lot on the cloud which then led to their sales growing quickly and successfully so far

More and more investors are actually pushing the company’s price even higher in such a quick pace, it then led to them growing about 39.1 percent and analysts believe it would grow even more. They are now leading the race with $821 billion on market capitalization while Amazon is on $801 billion.

Last July, they have wrapped the fiscal year with over 23.3 percent growth over the $100 billion on revenue, which is the highest annual growth rate the company has ever gotten since 1999. This is the highest it has ever been since Bill Gates was leading the company. Despite having over a hundred billion more to go to be able to reach the trillion mark cap, experts believe that by the fourth quarter or the beginning of next year, they will be able to reach it, leaving Amazon behind the trillion race.

Amazon Falls Behind

People are now wondering whatever happened to Amazon during the third quarter loss against Microsoft. It turns out that the company has failed to live up to the expectations of the analysts from Wall Street after dropping more than 10 percent on their shares, which is said to be the most they have dropped in the past three years.

Last week, Amazon was worth $805 billion but now they dropped to $801 billion which is reported to be disappointing more and more investors. This could definitely mean that it may be a disappointing holiday season for the company.

That is because with the beginning of the fourth quarter, they are only operating around $2.1 billion to $3.6 billion, which is still lower than the Wall Street analysts’ expectations which is over $3.9 billion. Amazon said that one of the reasons may be because of the wage increase that they did earlier this month. Their CEO Jeff Bezos, who is known to be the richest man in the world, said that the company is continuing to grow despite the stocks falling since the Amazon business have already reached their $10 billion annual sales.